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Strong Financial Performance and Growth Prospects Make SJW a Buy: Analyst Report

Strong Financial Performance and Growth Prospects Make SJW a Buy: Analyst Report

In a report released today, Ross Fowler from Bank of America Securities maintained a Buy rating on SJW (SJWResearch Report), with a price target of $63.00.

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Ross Fowler has given his Buy rating due to a combination of factors influencing SJW’s financial performance. The company’s first-quarter adjusted earnings per share (EPS) for 2025 significantly exceeded expectations, showing a 39% year-over-year increase, primarily driven by rate relief from the California general rate case. This improvement in EPS was supported by a 12% rise in revenues, which was attributed to rate increases and usage benefits, despite higher production expenses.
Furthermore, SJW has maintained its full-year EPS forecast for 2025 and reaffirmed its long-term growth guidance, indicating confidence in its financial outlook. The company’s strong position is further bolstered by favorable regulatory outcomes and a deferred cost of capital review, which supports constructive authorized returns on equity. Additionally, the current stock price presents a potential upside, as it trades at a discount compared to its peers, suggesting room for growth and making it an attractive investment opportunity.

In another report released on April 11, Seaport Global also maintained a Buy rating on the stock with a $59.00 price target.

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