Analysts at Baird recently took an in-depth look at water utility stocks. Many names in the space have underperformed recently despite reporting strong Q1 earnings numbers, and analysts maintain their overall bullish outlook.
Strong Capex Recovery
Analysts note that spending levels remain high for many water names, but the companies are doing a good job of spending wisely. Upgrading and replacing aging infrastructure has not hurt their bottom lines, as earnings were up 14 percent year-over-year in Q1.
Positive Outlook
Baird expects recent efforts to modernize infrastructure will eventually lead to a long-term investment cycle in water stocks. Analysts are calling for up to 8 percent…
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