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On Tuesday, Mizuho (NYSE:MFG) Securities updated its outlook on Ecolab Inc . (NYSE:ECL) shares, raising the price target to $302 from the previous $297, while retaining an Outperform rating on the stock. Currently trading at $262.87, Ecolab boasts a perfect Piotroski Score of 9 according to InvestingPro data, indicating strong financial strength. The adjustment follows Ecolab’s guidance for the calendar year 2025, projecting earnings per share (EPS) between $7.42 and $7.62, with a midpoint of $7.52. This forecast is in line with the Morgan Stanley (NYSE:MS) USA estimate and Bloomberg consensus of $7.55 and $7.45, respectively. With a current P/E ratio of 34.15, InvestingPro analysis suggests the stock is trading above its Fair Value, despite maintaining strong financial metrics.
For the first quarter of 2025, Ecolab anticipates earnings of $1.50 per share, slightly below the Morgan Stanley USA estimate of $1.54 but matching the broader consensus. The company reported a 14% year-over-year increase in adjusted operating income for the fourth quarter of 2024, amounting to $699 million. This result was close to the Morgan Stanley USA and consensus estimates of $713 million and $700 million, respectively.
Ecolab’s financial performance in the last quarter was bolstered by a 2% rise in both volume and price. The company also reaffirmed its target operating margin of 20% to be achieved over the next few years, compared to the 17.4% reported in the fourth quarter of 2024. The company’s overall financial health score is rated as GREAT by InvestingPro, with particularly strong profitability metrics.
The revised price target reflects Mizuho’s confidence in Ecolab’s potential for higher earnings. Looking further ahead, Mizuho anticipates that the next twelve months plus one fiscal period earnings, ending December 2026, will reach $8.50 per share, up from the previous estimate of $8.24 for the period ending September 2026.
In other recent news, Ecolab Inc. has been the subject of significant analyst attention. Morgan Stanley upgraded Ecolab’s stock rating from Equalweight to Overweight and raised the price target to $280, citing the company’s potential value that the market has not yet fully recognized. RBC Capital Markets, however, adjusted its price target on Ecolab to $294 from $306, maintaining an Outperform rating and projecting a 20% operating income margin target by the fiscal year 2027. Meanwhile, Piper Sandler reduced Ecolab’s price target from $305 to $270, anticipating slower growth due to a weaker macroeconomic environment.
In contrast, BMO Capital upgraded Ecolab’s stock from Market Perform to Outperform, setting a new price target of $290. The upgrade is based on the expectation of double-digit earnings per share growth from 2025 to 2027. Furthermore, Ecolab announced a 14% increase in its quarterly cash dividend, marking the 33rd consecutive year of dividend growth for the company. These are recent developments that show varying outlooks for Ecolab’s future performance.
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