Brean Murray Carret & Co. analyst Michael Gaugler upgraded Consolidated Water (Nasdaq:CWCO) from "Hold" to "Buy," citing valuation.
Gaugler said, "In the past six weeks the shares have dropped 27%
and are now trading at their historically low P/E levels. The
compelling valuation is backed by a few other key items of interest
which include: 1) shares trading below book value; 2) strong balance
sheet; and 3) potential upside to current estimates if the company
returns to operate the Baugher Bay plant in BVI."
The bottom line is Consolidated may be an acquisition target on these prices.
"The company is now looking like an attractive acquisition candidate, given we believe the shares are now trading at the liquidation value of the assets," Gaugler said.
Gaugler has a price target of $12 on the company.
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