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Hold Rating Amid Operational Challenges and Market Uncertainties for Mueller Water Products

Hold Rating Amid Operational Challenges and Market Uncertainties for Mueller Water Products

In a report released yesterday, Joseph C Giordano from TD Cowen maintained a Hold rating on Mueller Water Products (MWAResearch Report), with a price target of $25.00.

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Joseph C Giordano’s rating is based on a combination of factors influencing Mueller Water Products. The company is navigating several challenges, including the closure of an old foundry and the complexities associated with backlog delivery across different product lines. Additionally, the ongoing conflict between Israel and Hamas may impact the demand for repair products.
Despite these challenges, there has been an improvement in the company’s results, providing some positive momentum. However, the uncertainty in the housing development sector remains a significant variable. The price target suggests a valuation of approximately 22.5x and 19.5x free cash flow for fiscal years 2025 and 2026, with enterprise value to EBITDA ratios of about 12.5x and 11.5x, respectively. These factors collectively contribute to the Hold rating.

In another report released on February 6, Goldman Sachs also maintained a Hold rating on the stock with a $29.00 price target.

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