Mizuho Securities analyst Brett Linzey has maintained their neutral stance on ZWS stock, giving a Hold rating on January 24.
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Brett Linzey’s rating is based on Zurn Water Solutions’ performance in the fourth quarter, where the company exceeded earnings expectations with an adjusted EPS of $0.32, surpassing both the estimates and consensus. Core sales grew slightly above projections, and EBITDA margins showed improvement due to continuous efficiency efforts. However, despite these positive aspects, the outlook for sales growth remains relatively flat, with only modest growth anticipated in certain segments.
Additionally, the company’s guidance for 2025 suggests an EBITDA increase, but it aligns closely with market expectations, indicating limited upside potential. While Zurn’s financial health is strong, with low net debt leverage and robust free cash flow, the lack of significant growth prospects led to the Hold rating. The decision to maintain a neutral stance reflects the balance between current financial performance and the tempered outlook for future growth.
According to TipRanks, Linzey is a 5-star analyst with an average return of 14.4% and a 76.19% success rate. Linzey covers the Industrials sector, focusing on stocks such as Stanley Black & Decker, Applied Industrial Technologies, and Parker Hannifin.
In another report released on January 24, Stifel Nicolaus also maintained a Hold rating on the stock with a $39.00 price target.