Zurn Elkay Water price target raised to $39 from $37 at Baird

Baird analyst Michael Halloran raised the firm’s price target on Zurn Elkay Water (ZWS) to $39 from $37 and keeps a Neutral rating on the shares. The company modestly exceeded expectations and raised the low end of guidance, the firm notes, highlighting that estimates are tracking higher as end markets prove resilient in a choppy environment and margin performance is strong. Signs of end market reacceleration are emerging for the second half of 2025/2026 and Drinking Water trends continue to be healthy. Balance sheet is well positioned for M&A. That said, Baird believes the positive execution is reflected in the current share price, and risk/reward feels limited until more pronounced end market reacceleration materializes.