Acquisition Announcement: Pentair plc will acquire Hydra-Stop LLC, a U.S. manufacturer of specialty valve solutions, for $290 million in cash, with a net transaction value of approximately $240 million after tax benefits.
Business Overview: Hydra-Stop, based in Burr Ridge, Illinois, employs over 50 people and generates nearly all its sales in the U.S., expected to reach around $50 million in sales by 2025 with margins near 30%.
Strategic Importance: The acquisition aims to enhance Pentair's commercial and infrastructure business by providing better solutions for municipalities to maintain water flow and reduce losses, aligning with the company's mission to improve global water sustainability.
Integration Plans: Following regulatory approval, Hydra-Stop will be integrated into Pentair’s Commercial and Infrastructure unit under the Flow business segment, with expectations for completion by the end of 2025.
Wall Street analysts forecast AWK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AWK is 137.83 USD with a low forecast of 122.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast AWK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AWK is 137.83 USD with a low forecast of 122.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
5 Hold
1 Sell
Hold
Current: 131.560
Low
122.00
Averages
137.83
High
155.00
Current: 131.560
Low
122.00
Averages
137.83
High
155.00
Barclays
Nicholas Campanella
Underweight
downgrade
$134 -> $122
2025-12-17
Reason
Barclays
Nicholas Campanella
Price Target
$134 -> $122
AI Analysis
2025-12-17
downgrade
Underweight
Reason
Barclays analyst Nicholas Campanella lowered the firm's price target on American Water to $122 from $134 and keeps an Underweight rating on the shares as part of its 2026 outlook for the utilities sector. The firm maintains a Positive industry view on the group, viewing 2026 as a year of "execution and defense" after the sector ramped spending commitments and guided to subsequent positive earnings revisions.
Jefferies
Underperform
to
Hold
upgrade
$114 -> $124
2025-11-05
Reason
Jefferies
Price Target
$114 -> $124
2025-11-05
upgrade
Underperform
to
Hold
Reason
Jefferies upgraded American Water to Hold from Underperform with a price target of $124, up from $114. The firm says the stock's valuation now better reflects the company's fundamentals after the 10% post-merger pullback.
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Jefferies
Buy
to
Hold
downgrade
$47 -> $44
2025-10-28
Reason
Jefferies
Price Target
$47 -> $44
2025-10-28
downgrade
Buy
to
Hold
Reason
Jefferies downgraded Essential Utilities (WTRG) to Hold from Buy with a price target of $44, down from $47, after the announcement of a merger with American Water (AWK). The 10% headline premium is "one of the lower premium deals in memory for a non merger of equals," the analyst tells investors.
Wells Fargo
Shahriar Pourreza
Equal Weight
initiated
$142
2025-10-27
Reason
Wells Fargo
Shahriar Pourreza
Price Target
$142
2025-10-27
initiated
Equal Weight
Reason
Wells Fargo analyst Shahriar Pourreza initiated coverage of American Water with an Equal Weight rating and $142 price target. The firm launched coverage of the powers and utilities group with 19 Overweights and 14 Equal Weights. Wells prefers names where with growth prospects "actually driving earnings higher" or stocks that are trading at valuation levels "not necessarily reflecting fundamentals." Wells added Constellation (CEG) to its "Best Idea List" for power and Sempra (SRE) to its "Best Idea List" for utilities. Utilities are "materially undervalued" as a "perfect storm of tailwinds" is hitting the group that is much more structural in nature than cyclical, contends the firm.
About AWK
American Water Works Company, Inc. is a water and wastewater utility company. The Company's primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. It also operates other businesses that provide water and wastewater services to the United States government on military installations, as well as municipalities. The Company operates its business through the Regulated Businesses segment. The Regulated Businesses segment includes subsidiaries that provide water and wastewater services to customers in approximately 14 states. The Company's utilities operate in states such as Pennsylvania, Georgia, Hawaii, Indiana, Iowa, Kentucky, Maryland, Tennessee, Virginia and West Virginia. The Company also serves commercial customers, fire service customers, industrial customers, public authorities, other utilities and community water and wastewater systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
