BUZZ-Jefferies sees Ecolab's new products to support pricing tailwind; raises PT

Reuters
05-20
BUZZ-Jefferies sees Ecolab's new products to support pricing tailwind; raises PT

** Jefferies raises price target on water solutions company Ecolab ECL.N to $310 from $295

** New price target represents an 18.6% upside to the stock's last close

** Brokerage says ECL's latest cost-saving technologies will help drive 200-300 basis points in annual sales growth from market share gains and support strategic pricing flexibility

** "Surcharges will offset cost increases, and with the cost saving from new products... company can increase customer prices, regardless of the macro environment," - Jefferies

** Brokerage estimates price hikes and productivity gains to lift earnings before interest and taxes $(EBIT)$ margins to 18.1% in 2026

** "Consumer confidence remains weak, but demand from the hospitality is trending higher, and pest elimination, data center, electronics, and water management demand has yet to cool," - Jefferies

** 13 of 27 brokerages rate the stock "buy" or higher, 14 "hold"; median PT is $274 - data compiled by LSEG

** Up till last close, stock up 13.1% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))

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