Bank of America Securities analyst Ross Fowler maintained a Buy rating on H2O America yesterday and set a price target of $59.00.
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Ross Fowler has given his Buy rating due to a combination of factors that highlight both transaction clarity and attractive valuation. The confirmation that Texas regulators accepted a fair market value for the Quadvest assets in line with the agreed purchase price removes a key deal-risk and ensures the full $483.6 million regulated asset base will support future earnings and rate recovery. The total consideration of $540 million, including the unregulated wholesale business, is viewed as favorable versus prior market expectations that the allowed rate base might be set below the deal price.
In addition, management continues to guide to meaningful earnings per share and credit metric accretion from the Quadvest acquisition by 2028, once Texas rate filings flow through, reinforcing the longer-term financial benefits. The company expects to file the sale transfer merger application in early 2026 and close the deal by mid‑2026, with funding needs and an eventual equity raise of roughly $350–$400 million already anticipated. Fowler also sees the shares as compelling given they trade at about a 15% discount to peers despite consistent operational delivery and a strong history of meeting or exceeding guidance, supporting his Buy rating and $59 price objective.
Fowler covers the Utilities sector, focusing on stocks such as Eversource Energy, Nisource, and PPL. According to TipRanks, Fowler has an average return of 5.9% and a 60.83% success rate on recommended stocks.