William Blair analyst Tim Mulrooney has maintained their bullish stance on ECL stock, giving a Buy rating yesterday.
Tim Mulrooney has given his Buy rating due to a combination of factors, primarily focusing on Ecolab’s strategic response to recent tariff changes. The company has implemented a 5% trade surcharge on its solutions and services in the United States to counteract the rising costs of raw materials, packaging, and equipment. This surcharge is expected to effectively mitigate the cost inflation caused by tariffs, as Ecolab sources a significant portion of its raw materials regionally.
Despite uncertainties regarding the impact of tariffs on demand across various customer segments, Mulrooney maintains a positive outlook. The revenue forecast for Ecolab has been increased, reflecting confidence in the company’s ability to manage cost pressures and sustain growth. Although the adjusted EPS estimates remain unchanged, the proactive pricing strategy is anticipated to alleviate gross margin pressures in the short term, with recovery expected over the following year.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $285.00 price target.
Based on the recent corporate insider activity of 119 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.