Stifel raises Watts Waters price target to $275 on digital strategy outlook

Published 18/06/2025, 11:18
Stifel raises Watts Waters price target to $275 on digital strategy outlook

Stifel raised its price target on Watts Waters (NYSE:WTS) stock to $275.00 from $260.00 on Wednesday, while maintaining a Buy rating on the water solutions company. The company, currently valued at $8 billion, has demonstrated strong financial performance with a 29.4% return over the past year. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.

The price target increase followed meetings between Stifel analysts and Watts Waters executives, including CEO Bob Pagano, CFO Shashank Patel, and SVP of FP&A and Investor Relations Diane McClintock, held in Baltimore on Wednesday.

Stifel cited a better understanding of the company’s long-term digital strategy and early deployment of its Nexa platform as key factors behind the more optimistic valuation.

The research firm also highlighted what it views as competitive advantages that should help Watts Waters navigate successfully through current volatile market conditions.

Despite the challenging macro environment, Stifel expressed confidence in the company’s ability to leverage these advantages to maintain its market position.

In other recent news, Watts Water Technologies has reported its Q1 2025 earnings, which exceeded analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $2.37, surpassing the projected $2.12, while revenue reached $558 million, slightly above the forecasted $547 million. Watts Water Technologies also completed the acquisition of Icon (NASDAQ:ICLR), which has positively contributed to its performance. The company maintains its full-year organic sales outlook, expecting flat to 3% growth in Q2, despite economic uncertainties. In corporate governance updates, shareholders at the annual meeting approved all proposals, including the re-election of nine directors and the ratification of KPMG LLP as the independent auditor. Additionally, Watts Water Technologies has announced a 21% increase in dividends starting in June. The company is actively managing its supply chain to mitigate tariff impacts and is confident in its strategic positioning amid market challenges.

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