American States Water Faces High Valuation Risks, BofA Downgrades Stock

1. AWR downgraded from Neutral to Underperform, price target lowered to $71. 2. AWR has a 32% premium, facing potential multiple compression. 3. Regulatory approvals have positively impacted AWR's forecast. 4. High premiums may be unsustainable, yet ESG trends could bolster water utilities. 5. Expected EPS for AWR remains strong, with estimates rising through 2027.