American Water upgraded to Neutral at BofA on merger potential

As previously reported, BofA upgraded American Water (AWK) to Neutral from Underperform with a price target of $139, up from $117. The firm believes its prior concerns have “largely played out” and are significantly priced in, adding that they could be mitigated if the Essential Utilities (WTRG) merger is approved. The merger approval faces a “long path,” but addresses the bear case and it will be “harder to poke holes” if the pending merger closes, the analyst tells investors.