As previously reported, BofA Merrill Lynch analyst Julien Dumoulin-Smith downgraded American Water to Underperform from Neutral citing valuation following the greater than 30% advance in the stock over the last year. He attributes the stock's strong outperformance to investors looking for exposure to an infrastructure theme and a perception of lower risk among water utilities, but he cautions that American Water's growing premium may be "largely unwarranted." After having slightly revised his estimates higher, Dumoulin-Smith raised his price target on the stock to $121 from $110.