California Water Service Arm to Acquire Assets of HOH Utilities Company; Shares Rise 1.7%

Shares of California Water Service Group (CWT) rose 1.7% in Friday’s trading session after its subsidiary Hawaii Water Service announced its intention to acquire the assets of HOH Utilities Company, a wastewater utility, which is currently serving almost 1,800 residential, commercial, and resort customers in Poipu and Koloa.

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California Water Service Group is an American public utility company that provides drinking water and wastewater services.

“We are pleased to establish operations on the island of Kauai. Our team looks forward to welcoming HOH Utilities Company customers to Hawaii Water and providing them with the same quality, service, and value that we deliver to our other customers on the islands,” said, the president and CEO of Hawaii Water, Martin A. Kropelnicki. (See California Water Service’s stock analysis on TipRanks)

In May, Robert W. Baird analyst Ben Kallo maintained a Buy rating and a price target of $60 (1.99% upside potential) on the stock. Kallo anticipates California Water Service’s earnings per share in the second quarter of 2021 to be around $0.31.

The rest of the Street is cautiously optimistic about the stock with Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average analyst California Water Service price target of $60 implies 1.99% upside potential from current levels. Shares have jumped 12.6% over the past six months.