UBS analyst Gregg Orrill upgraded Essential Utilities to Buy from Neutral with a price target of $43, up from $41. The firm expects the American Water merger to close by Q1 of 2027 and sees "attractive upside." Essential's standalone positives include a stable credit profile and "low risk" growth plan the analyst tells investors in a research note. UBS sees 20% total return potential including a 3.7% standalone dividend yield from the merger.
