Vincent Andrews, an analyst from Morgan Stanley, maintained the Buy rating on Ecolab (ECL – Research Report). The associated price target remains the same with $280.00.
Vincent Andrews has given his Buy rating due to a combination of factors that highlight Ecolab’s potential for growth. A significant aspect of his analysis is the company’s One Ecolab strategy, which he believes will lead to a positive shift in volume growth. This strategy is expected to enhance Ecolab’s ability to achieve higher incremental margins, potentially reaching the 40-50% range, which is a substantial improvement from the pre-COVID levels.
Another reason for the Buy rating is Andrews’s assessment that current market expectations for Ecolab’s incremental margins are low. This presents an opportunity for positive surprises if the company meets or exceeds these expectations. Additionally, despite broader challenges in the Chemicals sector, Andrews is confident that Ecolab’s strategic initiatives will position it well, even if volume growth does not materialize as expected. Overall, the probability of success in Ecolab’s volume growth is considered higher than the risk of failure, reinforcing the Buy recommendation.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $305.00 price target.
Based on the recent corporate insider activity of 121 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ECL in relation to earlier this year.