American Water upgraded to Equal Weight from Underweight at Wells Fargo

Wells Fargo upgraded American Water (AWK) to Equal Weight from Underweight with a price target of $129, down from $133. The firm shuffled water utility ratings for the new year. American Water’s parent level interest expense will go away without any impact to utility capital structures by paying down or avoiding issuing utility level debt, the analyst tells investors in a research note. Wells no has a better understanding of how the company can continue to deliver consistent, above-average earrings growth.