American Water Works Company (NYSE:AWK) Receives 'Buy' Rating and Price Target Increase from UBS

• UBS confirmed a "Buy" rating for American Water Works Company (NYSE:AWK) and raised its price target to $162.00, indicating potential stock growth.
• The water utility expanded its operations through a $34.50 million acquisition by Missouri American Water, adding approximately 10,800 new water and wastewater customers.
• American Water Works Company maintains strong financial health with $1.40 billion in liquidity and projected high single-digit percentage annual adjusted EPS growth.

American Water Works Company (NYSE:AWK) is the largest publicly traded water and wastewater utility in the United States. The company provides drinking water, wastewater, and other related services to customers across many states. It operates within a regulated industry, which often leads to stable and predictable revenue, making it a key player in the utility sector investment landscape.

On September 10, 2026, analyst firm UBS confirmed its "Buy" rating for American Water Works Company. The firm also raised its price target on the utility stock to $162.00. This new target suggests potential stock growth from the stock's price of $140.33 at the time of the rating action, reflecting a positive AWK stock analysis.

This positive outlook is supported by the company's recent expansion activities. A subsidiary, Missouri American Water, successfully acquired the City of Neosho's water and wastewater systems for $34.50 million. This strategic purchase adds approximately 5,400 water and 5,400 wastewater customers to its operations, highlighting the company's utility growth strategy.

Alongside the acquisition, American Water Works Company plans to invest an additional $35.00 million to improve the infrastructure of these new systems. This commitment to making necessary system investments supports the company's goal of delivering reliable service and enhancing operational efficiency for the community, reinforcing its position as a leading water infrastructure provider.

The company's financial health supports these growth initiatives. It finished the second quarter with $1.40 billion in available liquidity, which is cash and other assets that can be quickly converted to cash. As highlighted by Seeking Alpha, American Water Works Company is also positioned to achieve high single-digit percentage annual adjusted EPS growth, showcasing strong financial performance in the utility sector.