Company TransformationThe pullback provides an opportunity to own a business in the midst of a transformation to a high-quality company with impressive margins, above-market growth characteristics, strong FCF generation, differentiated earnings power, and relative multiple expansion.
Financial PerformancePentair reported adjusted EPS of $1.08, which exceeded the estimate and consensus.
Margin ExpansionUpgrading PNR to Outperform on a meaningful margin expansion opportunity to at/near best-in-class levels.