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Investing.com - Stifel has reiterated its Buy rating on Ecolab Inc. (NYSE:ECL) while maintaining its price target of $303.00. The stock, currently trading at $273.56 and near its 52-week high of $286.04, has demonstrated strong momentum with a 17.3% year-to-date return. According to InvestingPro data, analyst targets range from $243 to $325, reflecting mixed views on the company’s current valuation.
The research firm expressed continued confidence in Ecolab’s ability to achieve its 20% operating profit margin (OPM) target by 2027, even under lower growth scenarios similar to current market conditions.
Stifel’s analysis follows an Ecolab investor day, after which the firm reinforced its positive outlook on the company’s margin expansion capabilities despite present growth challenges.
While Stifel indicated a preference for Ecolab to achieve its organic growth target of 5%-7%, the firm noted that management appears to have "ample levers to drive continued margin" improvement regardless.
The reaffirmation comes as Ecolab navigates a period of slower growth, though Stifel remains convinced of the company’s fundamental operational strength and margin expansion potential over the next three years.
In other recent news, Ecolab Inc . has announced a significant acquisition, purchasing the electronics water business from Ovivo Inc. for approximately C$2.4 billion. This transaction is anticipated to close in the first quarter of 2026, pending regulatory approval and other standard conditions. Following this acquisition announcement, Jefferies raised its price target for Ecolab to $315, maintaining a Buy rating. In parallel, BMO Capital also increased its price target to $310, citing Ecolab’s robust platform and potential for 12-15% EPS growth, while keeping an Outperform rating. Additionally, RBC Capital reiterated its Outperform rating with a $294 price target, highlighting the upcoming investor day as a source of valuable insights into the company’s revenue and business segments. Meanwhile, Raymond James has initiated coverage with a Market Perform rating, expressing confidence in Ecolab’s pricing strategies in differentiated business areas. These developments reflect ongoing interest and positive sentiment from analysts regarding Ecolab’s strategic moves and financial prospects.
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