Bond.az - UBS upgraded Essential Utilities (NYSE:WTRG) to Buy from Neutral on Thursday and set a price target of $43.00.
The firm expects the merger with AWK to close and sees 20% total return potential including a 3.7% standalone dividend yield.
Under the merger, expected to close by Q1 2027, Essential Utilities shareholders will receive 0.305 times AWK shares.
UBS cited standalone positives for Essential Utilities including a stable credit profile, low-risk capital-intensive growth plan, and stable regulatory relations.
