Hold Rating Maintained as Plastics Headwinds and 2026 Earnings Decline Offset Utility Growth Upside

Maxim Group analyst Tate Sullivan has maintained their neutral stance on OTTR stock, giving a Hold rating on February 18.

Tate Sullivan has given his Hold rating due to a combination of factors, primarily the weaker 4Q25 results and the disappointing 2026 earnings outlook tied to the Plastics segment. The company’s PVC pipe business is facing declining prices and shrinking margins, which led to revenue and EPS falling short of both his estimates and Street expectations despite solid performance in the Electric and Manufacturing segments.

At the same time, management issued 2026 EPS guidance that points to a double‑digit decline from 2025, while planning a sizable increase in capital spending on utility projects that will likely require new debt financing. Although the utility operations are growing and support long‑term EPS growth targets, Sullivan sees near‑term earnings pressure in 2026 and 2027 from the Plastics business, making the current valuation of about 14x his 2026 EPS forecast appear balanced rather than compellingly cheap or expensive.

OTTR’s price has also changed slightly for the past six months – from $83.170 to $84.950, which is a 2.14% increase.