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On Wednesday, JPMorgan analyst Jeffrey Zekaukas increased the price target on Ecolab Inc . (NYSE:ECL) shares to $260 from $255, while maintaining a Neutral rating. Ecolab’s stock rose by 6.2%, or approximately $15 per share, in contrast to a flat performance by the S&P 500 index. This increase followed the company’s fourth-quarter earnings report for 2024 and its earnings per share (EPS) guidance for 2025.
Ecolab’s shares reacted positively after the company overcame investor concerns regarding potential negative currency translation effects that could impact the 2025 earnings guidance. The market was also buoyed by the company’s 2% organic volume growth rate in the fourth quarter of 2024, which was achieved despite challenging conditions in consumer and industrial markets.
The company provided an adjusted earnings guide for 2025, projecting an EPS range of $7.42 to $7.62, which indicates a growth of 12% to 15% compared to the adjusted EPS of $6.66 for 2024. The lower end of this forecasted range was just shy of the consensus estimate of $7.45 per share, while the midpoint of $7.52 per share was comfortably above consensus estimates.
Ecolab’s market capitalization saw a substantial increase of $4.4 billion following the earnings report, which surpassed consensus estimates by about $25 million before taxes. Zekaukas noted that Ecolab typically sets its earnings guidance at roughly the midpoint of its provided range, suggesting an expected EPS growth of around 13% for 2025.
In other recent news, Ecolab Inc. has seen a flurry of activity from financial analysts. Mizuho (NYSE:MFG) Securities raised its price target for Ecolab to $302, based on guidance for 2025 earnings per share (EPS) between $7.42 and $7.62. The company also reported a 14% year-over-year increase in adjusted operating income for the fourth quarter of 2024, amounting to $699 million.
On the other hand, Morgan Stanley (NYSE:MS) upgraded Ecolab’s rating from Equalweight to Overweight and increased the price target to $280. This was attributed to a proprietary model suggesting that the market has not fully recognized the potential value of Ecolab’s sales per unit.
However, RBC Capital Markets reduced its price target on Ecolab shares to $294, based on a conservative estimate of approximately 4% organic growth for the fiscal year 2025. Piper Sandler also lowered Ecolab’s price target from $305.00 to $270.00, anticipating slower growth due to a weaker macroeconomic environment.
Finally, BMO Capital upgraded Ecolab’s stock from Market Perform to Outperform, citing a clear pathway for Ecolab to achieve double-digit EPS growth from 2025 to 2027. These recent developments highlight the ongoing attention from financial analysts on Ecolab’s performance and projections.
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