Pentair upgraded to Outperform from Neutral at Baird

Baird upgraded Pentair (PNR) to Outperform from Neutral with an unchanged price target of $114. The firm sees a “meaningful” margin expansion opportunity and attractive long-term cycle dynamics for Pentair at a valuation near five-year averages “despite a meaningfully improved financial profile.” This combination is unique in a “choppier” industrial landscape and largely driven by actions in the company’s control, the analyst tells investors in a research note. Baird also views the company’s balance sheet as an “additional untapped catalyst.” It sees a favorable risk/reward at current levels with upside to $140-$160 over the next couple of years versus downside risk to $75-$80.