In a report released today, Michael Halloran from Robert W. Baird upgraded Pentair (PNR – Research Report) to a Buy, with a price target of $114.00.
Michael Halloran has given his Buy rating due to a combination of factors that highlight Pentair’s potential for significant growth and transformation. The company is positioned for a meaningful margin expansion, driven by internal initiatives and cultural buy-in, which are expected to elevate its financial profile to near best-in-class levels. This is particularly compelling given the current valuation near five-year averages, presenting a unique opportunity in a volatile industrial landscape.
Moreover, the recent underperformance of Pentair’s stock relative to the S&P 500 provides a strategic entry point for investors. The pullback is seen as an opportunity to invest in a company undergoing a transformation with impressive margins, strong free cash flow generation, and differentiated earnings power. Additionally, the company’s end markets are approaching their trough, with demographic and aftermarket exposure providing downside buffers. The long-term growth prospects remain robust, supported by secular drivers and strategic initiatives aimed at enhancing pricing and operational excellence.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PNR in relation to earlier this year.