Analyst John McNulty from BMO Capital maintained a Buy rating on Ecolab and keeping the price target at $307.00.
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John McNulty has given his Buy rating due to a combination of factors that highlight Ecolab’s potential for long-term growth despite short-term challenges. Although the company’s recent pricing performance was not as strong as expected, Ecolab is projected to achieve mid-teens EPS growth by 2025, with continued double-digit growth anticipated in 2026. This stability and growth potential make the current weakness in Ecolab’s stock an attractive buying opportunity.
Furthermore, Ecolab’s strategic investments in high-growth areas such as life sciences, industrial water purification, and global high-tech sectors are expected to drive consistent growth. The company’s focus on innovation, such as transitioning to AI-based models in pest intelligence, further enhances its value proposition. These initiatives, along with anticipated pricing gains, support the expectation of double-digit EPS growth from 2025 to 2027, justifying Ecolab’s valuation and positioning it to outperform in a challenging market environment.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $303.00 price target.
Based on the recent corporate insider activity of 125 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.