Ecolab (ECL) is positioned for stronger organic momentum and margin improvement as its faster-growing businesses expand, recent price increases take hold, and the company sells more across its existing customer base, RBC Capital Markets said Tuesday in a report after investor meetings with Chief Financial Officer Scott Kirkland.

Ecolab expects revenue growth to accelerate to 5% to 7% over the medium term, supported by high-growth areas such as life sciences, global high-tech, pest control and digital solutions, along with contributions from recent acquisitions including CoolIT, the report said.

Management expects recent price increases, including temporary energy-related fees and longer-lasting list-price adjustments, to offset higher commodity costs by late Q2 or early Q3, RBC said. That should help Ecolab return to 12% to 15% EPS growth starting in Q3, excluding the CoolIT acquisition, the report said.

RBC maintained its outperform rating on Ecolab stock and its price target of $337.

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