CWCO - Consolidated Water raised to Buy at Janney after Q2 results well beyond forecasts

2023-08-14 12:54:37 ET

Consolidated Water ( NASDAQ: CWCO ) +11% in Monday's trading as Janney upgraded the stock to Buy from Neutral with a $28 price target, raised from $24, after Q2 results far exceeded expectations, with revenues boosted by construction of the water treatment plant in Goodyear, Arizona.

Janney's Michael Gaugler said he raised his full-year outlook to reflect higher levels of revenue recognition from the Goodyear project, as well as 2024 forecasts on higher profitability expectations.

Momentum continues across Consolidated Water's ( CWCO ) business model, volumes are increasing for the Retail segment due to a pick-up in post-COVID tourism, revenues at the Services segment have increased substantially due to contract building activity, business conditions in the Manufacturing segment have normalized, and the Bulk Water segment continues to generate steady profitability, Gaugler said.

More on Consolidated Water:

• Financial and valuation comparison to sector peers
• Analysis: Consolidated Water Is Capturing Market Share In Infrastructure Spending
• Stock price return: Up 55.5% YTD, up 54.5% in the past 12 months

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