Essential Utilities, Inc. (NYSE: WTRG) Merger Insights and Financial Outlook

Font: Financial Modeling Prep  • Oct 27, 2025

• Northcoast Research sets a price target of $46 for WTRG, indicating an 11.62% potential upside from its current price.
• The merger with American Water Works is valued at $63 billion, including debt, aiming to enhance service offerings and operational efficiencies.
• Legal investigations by Ademi Firm and Halper Sadeh LLC are underway, focusing on potential breaches of fiduciary duty and the fairness of the sale terms for Essential shareholders.

Essential Utilities, Inc. (NYSE: WTRG) is a prominent player in the utilities sector, providing water and wastewater services. Recently, Northcoast Research set a price target of $46 for WTRG, while its current price is $41.21, indicating a potential upside of approximately 11.62%. This price target comes amidst significant developments involving a merger with American Water Works Company, Inc.

The merger between Essential Utilities and American Water Works is valued at around $63 billion, including debt. This all-stock deal will see Essential shareholders receiving 0.305 shares of American Water for each share they own. Post-merger, American Water shareholders will control about 69% of the combined entity, while Essential shareholders will own approximately 31%.

The transaction has attracted scrutiny, with the Ademi Firm investigating potential breaches of fiduciary duty by Essential Utilities. Concerns include substantial benefits for Essential insiders and a penalty clause that may limit competing offers. Halper Sadeh LLC is also examining the fairness of the sale terms for Essential shareholders, urging them to act quickly to protect their interests.

Despite these legal investigations, the merger aims to enhance service offerings and operational efficiencies, creating a stronger entity in the utilities sector. WTRG's stock has seen minor fluctuations, with a current price of $41.19 and a market capitalization of approximately $11.55 billion. The stock's trading volume today is 2,985,795 shares, reflecting investor interest amidst these developments.