Jefferies downgraded Essential Utilities (WTRG) to Hold from Buy with a price target of $41, down from $44, post the Q3 report. The firm says the water segment’s downward rate base revision to 6% from 8%, partially due to limited Delcora visibility, fell slightly below its expectations, likely due to a delayed East Whiteland deal and broader sector challenges. The analyst cites the slowdown in Essential’s water segment for the downgrade. The stock has re-rated successfully, and Jefferies now sees “less appeal to a non-electric, hybrid gas/water utility,” the analyst tells investors in a research note.
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