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Zurn Elkay Water just downgraded at KeyBanc, here’s why

Zurn Elkay Water just downgraded at KeyBanc, here’s why

KeyBanc downgraded Zurn Elkay Water to Sector Weight from Overweight without a price target. The analyst continues to appreciate secular drinking water trends, but sees a more balanced risk/reward moving forward with the shares up 38% year-to-date. With Zurn’s valuation now ahead of the average peer multiple, a less supportive end market backdrop paired with slower momentum in the Hygienics business post-COVID could hamper a further re-rating of the stock, the analyst tells investors in a research note.

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