Mizuho raises Pentair stock price target to $122 on solid results

Published 23/07/2025, 12:24
Mizuho raises Pentair stock price target to $122 on solid results

Investing.com - Mizuho (NYSE:MFG) raised its price target on Pentair (NYSE:PNR) to $122.00 from $118.00 on Wednesday, while maintaining an Outperform rating on the stock. The company, currently trading at $104.87 with a market capitalization of $17.25 billion, appears overvalued according to InvestingPro’s Fair Value analysis.

The price target increase follows what Mizuho described as "fairly solid" quarterly results across all metrics compared to expectations, despite a "volatile operating environment." Pentair reported beats on earnings per share, margins, and revenue, maintaining a healthy gross margin of 39.66% on revenues of $4.076 billion. InvestingPro data shows 5 analysts have revised their earnings upward for the upcoming period, with 10+ additional insights available to subscribers.

Mizuho revised its earnings per share estimates upward, now projecting $4.82 for 2025 (up from $4.70) and $5.30 for 2026 (up from $5.25), citing tariff relief as a contributing factor.

The company’s third-quarter guidance brackets consensus estimates, while Pentair has revised its full-year midpoint guidance higher. Mizuho noted that pool pricing remains strong, though volume is flat to down without acceleration expected in the second half of the year.

Pentair has divested KBI as part of its focus on higher-margin businesses, and its transformation savings remain on track, according to Mizuho. The company’s merger and acquisition pipeline is beginning to increase, though Pentair is currently prioritizing share repurchases. Notably, the company has maintained dividend payments for 50 consecutive years, demonstrating strong financial stability.

In other recent news, Pentair reported its second-quarter adjusted earnings, which exceeded analyst expectations. Despite this positive earnings report, the company provided mixed guidance, causing shares to dip slightly in pre-market trading. Additionally, TD Cowen downgraded Pentair’s stock rating from Buy to Hold, citing concerns about the company’s growth outlook. The research firm also adjusted its price target for Pentair from $115.00 to $110.00. TD Cowen expressed worries about the delayed recovery in the end markets, which they believe limits the potential for near-term estimates. These developments indicate a cautious stance from analysts regarding Pentair’s immediate future. Investors may want to consider these recent updates when evaluating Pentair.

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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