Energy Recovery sinks after Northcoast downgrade on project delay risk

As previously reported, Northcoast downgraded Energy Recovery (ERII) to Neutral from Buy without a price target The stock in afternoon trading is down 5% to $10.68. When the company’s 2026 revenue missed estimates on February 25, the Iran war had not yet begun, the analyst told investors in a research note. The firm sees “rising risk that the war will prove a lasting setback for confidence in the Middle East economy.” Northcoast said the Middle East and Africa region is “by far” the largest desal market globally, comprising two-thirds of Energy Recovery’s sales. It cited project delay risks from the Middle East war for the downgrade.