Investing.com -- Barclays initiated coverage of Essential Utilities Inc. with an Overweight rating and a $42 price target on steady growth prospects in the regulated water and gas business. “We initiate coverage of Essential Utilities with an Overweight rating seeing the stock as a preferred way to gain exposure to the water industry,” analysts at Barclays said. Barclays also pointed to potential growth from M&A, with Essential Utilities targeting municipal water assets at attractive valuations and financing acquisitions with roughly a 50/50 debt-equity split. The stock trades at a FY27E P/E of 16.2x, roughly 6.7% below the water utility group and 5.3% below the gas group. Related articlesEssential Utilities a preferred stock for water sector exposure, says BarclaysDell stock: Here are the top 5 focus items into Analyst Day next weekBarclays upgrades Shoals Technologies on battery storage and data center demand