American Water and Essential Utilities Join Forces in Significant Agreement to Transform US Water Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 27 2025
0mins
Source: Benzinga
Merger Announcement: American Water Works and Essential Utilities have agreed to an all-stock, tax-free merger, creating a major regulated water and wastewater utility in the U.S. with a projected market capitalization of $40 billion.
Transaction Details: Essential stockholders will receive 0.305 shares of American Water for each share owned, reflecting a 10% premium, and the combined entity will serve approximately 4.7 million connections across 17 states.
Operational Benefits: The merger is expected to enhance infrastructure investment and operational efficiency, with American Water's CEO emphasizing the commitment to providing reliable and affordable services.
Leadership and Future Plans: Christopher H. Franklin will become executive vice chair, while John C. Griffith remains CEO; the merger is anticipated to be completed by the end of Q1 2027, pending regulatory approvals.
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Analyst Views on XYL
Wall Street analysts forecast XYL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XYL is 167.50 USD with a low forecast of 135.00 USD and a high forecast of 182.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 139.240
Low
135.00
Averages
167.50
High
182.00
Current: 139.240
Low
135.00
Averages
167.50
High
182.00
About XYL
Xylem Inc. is a water technology company. The Company designs, manufactures and services engineered products and solutions across a range of critical applications, primarily in the water sector. The Company’s Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, treatment equipment, and controls and systems. Its Applied Water segment's products include pumps, valves, heat exchangers, controls and dispensing equipment. Its Measurement & Control Solutions segment develops advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Company’s Integrated Solutions & Services segment provides equipment systems for industrial needs, full-scale outsourcing of operations and maintenance and municipal services, including odor and corrosion control services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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