Zurn Elkay Water upgraded to Buy from Hold at Stifel

Stifel analyst Nathan Jones upgraded Zurn Elkay Water (ZWS) to Buy from Hold with a price target of $34, down from $39. The firm is updating its models based on the current tariff developments and choosing names with a high quality business and management team to navigate this environment, the analyst tells investors in a research note. Investors had been concerned about supply chain for Zurn Elkay with about 25% of direct material spend in China and another 25% in Southeast Asia that will be subject to tariffs, but the firm sees the current level as an opportunity for investors to add a high quality company with high quality management and a proven record for supply chain management and pricing power, Stifel adds.