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Investing.com - RBC Capital has reiterated its Outperform rating and $294.00 price target on Ecolab Inc . (NYSE:ECL), currently trading near its 52-week high of $274.17, ahead of the company’s second-quarter 2025 earnings report scheduled for July 29. According to InvestingPro analysis, the $75.4 billion market cap company appears overvalued at current levels.
RBC expects Ecolab to deliver results approximately in line with consensus estimates for the second quarter of 2025, with third-quarter guidance likely to bracket market expectations. The company maintains a strong financial health score of "GOOD" on InvestingPro, supported by 39 consecutive years of dividend increases and a consistent track record of profitability.
The firm anticipates approximately 3% organic growth for Ecolab in the second quarter, with flat-to-1% volume growth as strength in High Tech, Life Sciences, Institutional, and Pest segments offsets softness in Industrial end markets, Healthcare, and Specialty divisions.
Pricing increases of 2-3% are expected for the quarter, with RBC projecting further improvement in the second half of 2025 as tariff-related pricing surcharges are implemented in the United States.
RBC also sees potential for a modest increase in Ecolab’s full-year 2025 earnings per share guidance, primarily driven by favorable foreign exchange tailwinds.
In other recent news, Ecolab Inc. reported its first-quarter earnings for 2025, meeting analyst expectations with an earnings per share (EPS) of $1.5, though revenue slightly missed forecasts at $3.7 billion. The company reaffirmed its full-year EPS guidance, projecting it to be between $7.42 and $7.62. Berenberg adjusted its price target for Ecolab shares to $243 from $252, reflecting a slight decrease in their full-year 2025 EPS estimate due to increased costs from tariffs. Meanwhile, Stifel reduced its price target to $303 but maintained a Buy rating, highlighting Ecolab’s strategic pricing adjustments as a strength. Additionally, Ecolab announced the appointment of Marion Gross, a former McDonald’s (NYSE:MCD) executive, to its board of directors, bringing her extensive supply chain management experience to the company. UBS maintained a Neutral rating with a $271 price target, noting Ecolab’s focus on digital and pest control solutions, which have shown significant growth. Ecolab also implemented a 5% surcharge on its products sold within the United States to counterbalance rising raw material costs due to tariffs. These developments underscore Ecolab’s strategic initiatives and responses to current market conditions.
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