AMERICAN STATES WATER CO has an Investment Rating of HOLD; a target price of $88.000000; an Industry Subrating of Low; a Management Subrating of Medium; a Safety Subrating of High; a Financial Strength Subrating of Medium; a Growth Subrating of Medium; and a Value Subrating of Low.

WATTS WATER TECHNOLOGIES-A has an Investment Rating of HOLD; a target price of $209.000000; an Industry Subrating of Low; a Management Subrating of Medium; a Safety Subrating of Medium; a Financial Strength Subrating of Medium; a Growth Subrating of Medium; and a Value Subrating of Medium.

It's happening slowly, but the yield curve is "un-inverting" for the first time in over two years. The 10s/twos spread reached about "plus six" basis points (bps) on Monday and was back to only "plus two" bps Thursday. The two-, five-, and 10-year yield charts all look like they are tracing out multi-year topping patterns. The two-year already has seen a very minor breakdown of its top, with the decline below 3.66% -- which was the intraday low from May 2023. If we see a further break in the two-year, as the current break is too small, the first area of interest would be in the 2.7% to 3.3% region based on a 50% and 38.2% retracement of the move higher since February 2021. Another area of interest is at 3%, or the last peak from both 2018 and 2008. The two-year yield of 3.7% implies that the fed fund target of 5.25%-5.5% is 155-180 bps too tight. If a normalized funds target is inflation (2%) plus growth (2%), the Fed is still 125-150 bps overly restrictive. The CME's FedWatch Tool shows a 71% probability that the Fed cuts 25 bps at the September 18 meeting, an 86% chance that the funds rate will be cut by a total of 50-75 bps in November, and a 77% chance that the funds rate will be cut by 100-125 bps by the end of 2024. The next logical spot for the 10-year is the bottom of its multi-year range at 3.25%. The five-year is nearing the bottom of its longer-term range at 3.25%. While lower rates mean higher "potential" stock valuations as well as capital gains for bonds, we'd be remiss if we didn't say that we don't want to see rates fall too far. That would have bearish implications for the economy and stocks. (Mark Arbeter, CMT)

WATTS WATER TECHNOLOGIES-A has an Investment Rating of HOLD; a target price of $201.000000; an Industry Subrating of Low; a Management Subrating of Medium; a Safety Subrating of Medium; a Financial Strength Subrating of Medium; a Growth Subrating of Medium; and a Value Subrating of Medium.