Erste Group initiates coverage on Ecolab stock with Buy rating

Published 13/10/2025, 21:54
Erste Group initiates coverage on Ecolab stock with Buy rating

Investing.com - Erste Group initiated coverage on Ecolab Inc. (NYSE:ECL) with a Buy rating on Monday. The company, currently valued at $76.7 billion, is trading near its 52-week high of $286.04, according to InvestingPro data.

The research firm cited Ecolab’s positive medium-term prospects and the company’s focus on continuously increasing return on invested capital as key factors behind the rating.

According to Erste Group, Ecolab’s sales growth is expected to accelerate next year, while its operating margin will continue to increase slightly in 2026, already standing well above the sector average.

The firm also noted that Ecolab’s return on equity is above average compared to industry peers.

Based on company guidance referenced by Erste Group, Ecolab expects earnings per share to increase by 10% year-over-year in the third quarter.

In other recent news, Ecolab is set to release its third-quarter 2025 earnings report, with RBC Capital maintaining its Outperform rating and a price target of $294. The firm expects Ecolab to meet expectations and reaffirm its full-year earnings guidance while providing fourth-quarter guidance consistent with analyst estimates. Additionally, Ecolab has launched its AI-enhanced CIP IQ solution, aimed at improving efficiency and reducing water usage for beverage manufacturers. This system, developed with 4T2 Sensors, promises a 15% increase in efficiency and a 20% reduction in water consumption.

Stifel reiterated its Buy rating on Ecolab, maintaining a price target of $303, expressing confidence in the company’s ability to reach a 20% operating profit margin by 2027. BMO Capital raised its price target to $310 from $307, citing Ecolab’s platform strength and projected 12-15% EPS growth. Meanwhile, Raymond James initiated coverage with a Market Perform rating, highlighting Ecolab’s potential for 1% excess pricing in differentiated business areas. These developments reflect a mix of confidence and cautious optimism among analysts regarding Ecolab’s future performance.

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

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