Mizuho Securities analyst Brett Linzey has reiterated their bullish stance on PNR stock, giving a Buy rating on January 24.
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Brett Linzey’s rating is based on several key factors that highlight the potential for Pentair’s stock. The company’s ongoing transformation efforts, particularly the 80/20 program, have led to significant productivity savings, with further gains anticipated. This transformation has bolstered the company’s margin targets, with an increase to a 26% margin by 2026, suggesting strong internal growth. Despite challenges in residential growth, execution and savings programs are progressing well, providing a solid foundation for future expansion.
Brett Linzey also considers the stock reaction to be excessively negative given the company’s strategic initiatives and margin improvements. The raised margin target and expected continuous productivity improvements offer a margin of safety, positioning the stock as undervalued compared to peers. The potential for upside in the company’s earnings power and the effective use of its balance sheet and free cash flow further support the confidence in the stock’s longer-term value, justifying the Buy rating and reiterating the $115 price target.
In another report released on January 24, Stifel Nicolaus also maintained a Buy rating on the stock with a $125.00 price target.