Bank of America Securities analyst Steve Byrne has reiterated their bullish stance on ECL stock, giving a Buy rating today.
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Steve Byrne’s rating is based on Ecolab’s strong position to capitalize on several drivers that are expected to bolster its earnings growth in the long term. The company benefits from robust demand across its end markets and a unique commercial model. Key factors include addressing water shortages, managing wastewater discharges, and infection control, as well as leveraging cross-selling opportunities through its One Ecolab initiative and a service-intensive business model. These elements are further supported by digital and remote monitoring tools that enhance customer loyalty and operational performance.
Additionally, Ecolab is on track to achieve significant margin expansion, having already improved margins by over 400 basis points in the past two years. The company is expected to reach an adjusted operating margin of 18% by 2025, with a target of surpassing 20% by 2027 through cost savings and efficiency gains. Ecolab’s guidance for mid-teens earnings per share growth in 2025, despite foreign exchange challenges, underscores its resilience and potential for continued share gains and pricing improvements, justifying the Buy rating.
Byrne covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, Ecolab, and FMC. According to TipRanks, Byrne has an average return of -2.1% and a 44.22% success rate on recommended stocks.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $307.00 price target.