Energy Recovery price target lowered to $20 from $22 at B. Riley

B. Riley analyst Ryan Pfingst lowered the firm’s price target on Energy Recovery (ERII) to $20 from $22 and keeps a Buy rating on the shares. Energy Recovery provided 2025 guidance and longer-term targets on an investor webinar, guiding 2025 revenue to $152M-$164M, and said it expects growth to be slower than the historical average over the next two years for its core desalination business but is confident in 2H26+ deliveries accelerating based on its pipeline visibility, the analyst tells investors in a research note. The firm says longer-term targets are well below the previous 2026 targets set by the prior management team, driven by macro factors and a more focused approach to the new market opportunities, and believes the 2029 CO2 target of $30M-$40M drove much of the weakness in the stock given the prior team’s 2026 target of $100M-$300M.