CWCO - Consolidated Water plunges as Janney downgrades on valuation slowing growth

2023-05-17 15:29:30 ET

Consolidated Water ( NASDAQ: CWCO ) -8.2% in Wednesday's trading after Janney downgraded the stock to Neutral from Buy with a $19 price target, citing valuation after rallying to a multiyear high.

Consolidated Water ( CWCO ) posted Q1 results that beat estimates, with sales and earnings momentum building across all segments that should continue through 2023 before slowing next year, Janney analyst Michael Gaugler said.

The company's Bulk Water and Services segments are performing well, but the Retail and Manufacturing segments "have a long way to reach previous levels of profitability," according to Gaugler, whose forecasts through 2024 "assume only very modest improvements for both segments, and should be considered conservative, with room for upside."

More on Consolidated Water:

• Financial and valuation comparison to sector peers
• Analysis: Consolidated Water: Being Careful With This Water Company
• Stock price return: Up 24.5% YTD, up 55.5% in the past 12 months

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