Essential Utilities' (WTRG) merger with American Water Works (AWK) offers an attractive upside with a 20% total return potential, UBS said in a Friday research report.
The company's standalone positives includes a steady credit profile, a low-risk and capital-intensive growth plan, and stable regulatory relations, according to the note.
UBS upgraded the stock to buy from neutral and raised its price target to $43 from $41.
Price: 36.91, Change: +0.22, Percent Change: +0.60
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