Gold prices steady amid Fed rate cut hopes; Trump-Putin talks awaited
Investing.com - Jefferies raised its price target on Ecolab Inc . (NYSE:ECL) to $315.00 from $310.00 on Tuesday while maintaining a Buy rating following the company’s acquisition announcement. The stock, currently trading at $275.23 and near its 52-week high, has shown strong momentum with a 17.3% year-to-date return. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score.
Ecolab announced it will acquire the electronics water business from privately-held Ovivo for $1.8 billion, according to Jefferies.
The acquisition will add approximately $500 million in revenue to Ecolab, though the EBITDA and EBIT contributions were not disclosed in the announcement.
Jefferies noted that this purchase will augment Ecolab’s footprint in the electronics business sector.
The firm expressed expectations for data center volumes to grow by 10% annually, a projection supported by this acquisition.
In other recent news, Ecolab Inc. announced a definitive agreement to acquire Ovivo Inc.’s Electronics division for approximately $1.8 billion in cash. This acquisition aims to bolster Ecolab’s position in providing water solutions for semiconductor manufacturing. Ovivo Electronics is projected to generate $500 million in sales in 2025. In addition, Ecolab’s board of directors declared a regular quarterly cash dividend of $0.65 per common share, continuing its unbroken streak of cash dividend payments for 88 years.
Ecolab has also appointed Julie P. Whalen, former CFO of Expedia (NASDAQ:EXPE) Group, to its board of directors. Whalen will serve on the Audit and Finance Committees. Meanwhile, Mizuho (NYSE:MFG) has raised its price target for Ecolab to $314, citing a steady growth outlook. The company reported second-quarter 2025 adjusted earnings per share of $1.89, aligning with the Bloomberg consensus estimate.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.