06:40 PM EDT, 10/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

AWK and WTRG announced the largest water utility merger in U.S. history, an all-stock deal valued at ~$40B market cap and ~$63B enterprise value, with targeted Q1 2027 closing. AWK shareholders would own 69% and WTRG shareholders 31% (0.305 AWK shares per WTRG share), serving 5.4M connections across 17 states with $33.6B combined rate base. AWK expects EPS accretion post-closing but maintained a 7%-9% long-term EPS and dividend growth target alongside 8%-9% rate base CAGR from 2024 to 2029. We think investors may have been disappointed that growth targets were not increased, as shares of both companies declined. Positively, the $28B combined 2025-2029 capex program supports growth from water infrastructure needs and PFAS compliance costs. Yet, we think investors may question long-term value given potential regulatory challenges, shareholder dilution, and lack of specific synergy targets, while interest rate pressures and growth concerns remain headwinds, in our view. AWK reports Q3 earnings on October 30.