Ecolab: Attractive Risk-Reward with Room for Multiple Expansion and Mid-Teens EPS Growth Supporting Buy Rating

William Blair analyst Tim Mulrooney has maintained their bullish stance on ECL stock, giving a Buy rating today.

Tim Mulrooney has given his Buy rating due to a combination of factors tied to Ecolab’s growth outlook and valuation. He notes that the recently completed Ovivo acquisition prompts only modest estimate revisions, with the core business trajectory remaining intact. While the 2026 earnings and margin projections are slightly lower because of deal-related amortization that will not be adjusted out, overall revenue expectations have been raised. Importantly, he highlights that the current share price implies about a 40% earnings multiple premium versus the S&P 500, which is meaningfully below the 55%–65% premium the stock commanded over most of the prior decade, suggesting room for multiple expansion.

Mulrooney sees several levers that could drive further appreciation in the stock. These include multiple sources of revenue acceleration, opportunities to enhance profitability, and the potential for earnings per share to compound at a midteens rate over time. In his view, these strengths more than compensate for identifiable risks such as raw material cost volatility, currency movements, cyclicality in certain end markets, acquisition integration challenges, and possible regulatory rollbacks affecting key sectors like public health and wastewater. Balancing these upside drivers against the risk profile, he concludes that the risk-reward remains attractive at current levels, supporting his Buy rating on Ecolab shares.

In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $314.00 price target.