H2O America price target lowered to $59 from $63 at BofA

BofA lowered the firm’s price target on H2O America (HTO) to $59 from $63 and keeps a Buy rating on the shares. H2O America’s acquisition of Quadvest provides strategic exposure to the rapidly-growing Houston metropolitan service territories and provides up to $500M of follow-on capex opportunities, the analyst tells investors in a research note. The eventual $350M-$450M equity issuance as stated by the company is a potential clearing event allowing shares to recover the discount versus water utility peers, BofA says.