Hold Rating Maintained for Watts Water Technologies Amid Mixed Market Conditions

TD Cowen analyst Joseph C Giordano maintained a Hold rating on Watts Water Technologies (WTS – Research Report) today and set a price target of $180.00.

Joseph C Giordano has given his Hold rating due to a combination of factors including Watts Water Technologies’ ability to maintain earnings growth in difficult market conditions. Despite expectations for organic growth to remain flat for the third consecutive year by 2025, the company has managed to slightly increase its price target, suggesting a valuation of nearly 20 times the expected earnings per share for that year.
However, challenges in the multifamily housing sector and a decline in institutional building from their October peaks present concerns. These issues are somewhat mitigated by the demand for repair and replacement, which provides a stabilizing effect. Overall, these mixed factors contribute to the decision to maintain a Hold rating.