UBS downgrades American Water on valuation after outperformance

UBS downgraded American Water (AWK) to Neutral from Buy with a price target of $160, up from $156. The firm cites valuation for the downgrade following the stock’s outperformance versus its utility peers. UBS also sees a lack of catalysts for American Water and potential slowdown in per- and polyfluoroalkyl substances rule implementation due to complexity of enforcement with tens of thousands of small systems in the U.S.