Ecolab stock rating reiterated by RBC Capital ahead of Q3 earnings

Investing.com - RBC Capital maintained its Outperform rating and $294.00 price target on Ecolab (NYSE:ECL) ahead of the company’s third-quarter 2025 earnings report, due October 28. The stock currently trades at $271.47, near its 52-week high of $286.04. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The research firm expects Ecolab to deliver results in line with expectations for the third quarter, with the company likely to reaffirm its full-year 2025 earnings guidance and provide fourth-quarter guidance consistent with analyst estimates. The company has demonstrated strong financial health, earning a "GOOD" rating from InvestingPro’s comprehensive analysis system.

RBC Capital projects approximately 4% organic growth for the third quarter, with strong performance in High Tech, Life Sciences, Institutional, and Pest segments offsetting weakness in Institutional, Paper, and Basic Industry divisions.

Pricing is expected to increase to approximately 3% in the third and fourth quarters, supported by a 5% U.S. tariff surcharge and value-based pricing strategies, which should strengthen organic growth in the second half of 2025.

The firm believes Ecolab’s focus on higher-growth markets including data centers, microelectronics, life sciences, and Ecolab Digital, combined with the Ovivo acquisition, positions the company for 12-15% earnings per share growth in fiscal year 2026 and beyond.

In other recent news, Ecolab Inc . has introduced its new AI-enhanced Ecolab® CIP IQ™ solution, aimed at improving efficiency and reducing water usage for food and beverage manufacturers. This innovative system, developed in collaboration with 4T2 Sensors, promises a 15% increase in efficiency and a 20% reduction in water consumption. Meanwhile, several analyst firms have weighed in on Ecolab’s stock. Stifel has reiterated its Buy rating, maintaining a $303 price target and expressing confidence in the company’s ability to reach a 20% operating profit margin by 2027. BMO Capital has raised its price target to $310 from $307, citing Ecolab’s platform strength and expected EPS growth of 12-15%. Raymond James has initiated coverage with a Market Perform rating, noting Ecolab’s potential for achieving 1% excess pricing in differentiated business areas. Additionally, RBC Capital has reiterated its Outperform rating with a $294 price target, ahead of Ecolab’s investor day, which will provide insights into revenue composition and business segments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.