DA Davidson raises Pentair stock price target to $19 from $17, maintains Buy

Published 21/07/2025, 11:28
DA Davidson raises Pentair stock price target to $19 from $17, maintains Buy

Investing.com - DA Davidson raised its price target on Pentair (NYSE:PNR) to $19.00 from $17.00 on Monday, while maintaining a Buy rating on the stock. The company, currently valued at $17.45 billion, has shown strong momentum with its stock trading near its 52-week high of $110.71. According to InvestingPro data, Pentair maintains a GOOD financial health score, supported by strong profitability metrics.

The firm cited Pentair’s second-quarter 2025 results, which showed strong pre-provision net revenue (PPNR) driven by an expanding net interest margin, solid balance sheet growth, and strong fees. The company has maintained dividend payments for 50 consecutive years, demonstrating remarkable financial stability.

Pentair shares rose 1% following the earnings announcement, as the company’s PPNR and earnings per share beat expectations, and management updated its 2025 outlook to reflect higher net interest income and tighter ranges for fees, operating expenses, and loan loss provisions.

DA Davidson raised its 2025 estimates for Pentair and noted potential upside on net interest margin and net interest income, given the company’s neutral balance sheet positioning and expectations that commercial loan growth will re-accelerate.

The firm believes Pentair’s strong return profile is undervalued at current trading levels of 1.4x tangible book value, 9.2x 2026 estimated earnings, and 1.3x 2026 estimated tangible book value, with above-peer returns projected for 2026.

In other recent news, Pentair plc reported revenues of approximately $4.1 billion for the previous fiscal year, maintaining its position as a significant player in the global market. JPMorgan recently upgraded Pentair’s stock rating from Neutral to Overweight, raising the price target to $113, citing improved financial prospects and effective pricing actions. Meanwhile, RBC Capital Markets increased its price target for Pentair to $101, following a strong first-quarter performance that exceeded operational expectations. UBS, however, adjusted its price target slightly downward to $110 but maintained a Buy rating, acknowledging the company’s strategic pricing initiatives amidst tariff-related challenges.

Pentair also declared a quarterly cash dividend of $0.25 per share, marking the 49th consecutive year of dividend increases, highlighting the company’s consistent return to investors. Additionally, the company announced the appointment of Lance Bonner as Executive Vice President, General Counsel, and Secretary, effective August 11, 2025. Bonner’s return to Pentair is seen as a strengthening of the executive leadership team. These recent developments reflect Pentair’s ongoing commitment to financial stability and strategic growth.

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