Essential Utilities (WTRG) | News Based Sentiment Analysis

• On October 2, 2025, Barclays initiated coverage of Essential Utilities with an "Overweight" rating and a $42.00 price target, citing the company as a preferred way to gain exposure to the water industry. Analyst Nicholas Campanella projects a long-term rate base CAGR of approximately 8% through fiscal year 2029, supported by a $7.8 billion capital plan, signaling confidence in the company’s growth potential.
• Despite the positive outlook from Barclays, Wall Street Zen downgraded Essential Utilities from a "hold" rating to a "sell" rating on October 4, 2025, creating a mixed signal for investors. This downgrade came as the consensus analyst price target decreased slightly from $46.38 to $45.75 per share.
• Institutional investors showed varied activity during the second quarter of 2025. AMF Tjanstepension AB increased its holdings by 17.6%, acquiring 18,594 shares valued at $4,614,000, while Hennessy Advisors Inc. decreased its stake by 27.2%, selling 45,600 shares worth $4,539,000.
• Essential Utilities reaffirmed its full-year 2025 EPS guidance of $2.07 to $2.11 on October 4, 2025, even as analysts predict $1.99 earnings per share for the current year. The market is also revising upward revenue expectations for FY2025 by 3.03% over the past three months.
• Looking ahead, Essential Utilities plans significant investments, allocating $7.8 billion from 2025 to 2029 to enhance its infrastructure, including $1.4-$1.5 billion in 2025. The company is actively pursuing acquisitions, with four pending deals expected to add over 200,000 customers, building on over 135,000 customers added since 2015.
• On October 4, 2025, Essential Utilities announced a strategic alliance with International Electric Power III, LLC to invest in a 1,400-acre data center facility in Pennsylvania, including an 18 million gallons per day water treatment plant. This project is expected to be operational in the first quarter of 2029.
• Essential Utilities and the Pennsylvania Environmental Council (PEC) launched the third round of "Protect Your Drinking Water" grants on October 1, 2025, offering grants ranging from $2,500 to $10,000 for watershed protection projects.

The Investment Story: October 2025 presented a mixed bag for Essential Utilities, with positive analyst coverage and reaffirmed guidance offset by a downgrade and varied institutional activity. The company continues to focus on long-term growth through substantial infrastructure investments and strategic acquisitions.

What It Means for Investors: The conflicting analyst signals suggest caution, but the reaffirmed guidance and ongoing investment in infrastructure indicate continued confidence from management. Investors should monitor the progress of pending acquisitions and the impact of institutional investment shifts.

Looking Ahead: Investors should watch for the next earnings release expected on November 3, 2025, with an anticipated EPS of $0.27, representing an 8% year-over-year increase. The grant application opening on October 22, 2025, and the progress of the data center facility project will also be key areas to follow.

The Bottom Line: Essential Utilities remains a long-term play on the stable water and natural gas utility sector, but investors should be aware of the mixed analyst sentiment and monitor the company's ability to execute its growth strategy amidst shifting institutional ownership.