Analyst Note
| Charles Fishman, CFA |We are increasing our fair value estimate to $122 per share from $113 after American Water Works reported strong 2020 earnings, increased its five-year capital expenditure forecast, and reaffirmed its 7%-10% long-term EPS growth target. The increase in our fair value estimate was primarily due to the increase in our estimate of future investment opportunities and the impact on earnings growth. Our fair value estimate also benefited from time-value appreciation.