On Wednesday, BMO Capital Markets adjusted its price target for Ecolab Inc . (NYSE:ECL) shares, increasing it to $295 from the previous $290, while reiterating an Outperform rating on the stock. The firm’s analysts believe that Ecolab stands out as a company capable of delivering double-digit earnings per share (EPS) growth despite various economic challenges. Currently trading at $261.87, near its 52-week high of $267.56, InvestingPro data shows the stock has delivered an impressive 30% return over the past year.
Ecolab is expected to see its pricing power modestly accelerate due to an enhanced value proposition offered to its customers. This, in turn, is anticipated to drive margins and earnings upward at a pace quicker than previously projected. Supporting this outlook, InvestingPro analysis reveals the company maintains a perfect Piotroski Score of 9, indicating strong financial health, with a robust gross profit margin of 43.5%. BMO Capital’s analysis suggests that there are very few companies in the market that can match this level of consistent double-digit EPS growth through 2027, especially considering the potential obstacles such as macroeconomic factors, tariffs, interest rates, and foreign exchange rates.
The confidence in Ecolab’s performance is further underscored by its designation as a Top Pick by BMO Capital Markets. The firm’s analysts expect that with Ecolab’s steady growth trajectory and ability to navigate through economic headwinds, the stock is likely to reach the newly established price target of $295.
Ecolab’s strategic positioning and operational performance have positioned it favorably in the eyes of BMO Capital Markets, which anticipates the company to continue outperforming in its sector. The increased price target reflects the firm’s optimism about Ecolab’s future financial results and market standing.
In other recent news, Ecolab has been the focus of several analysts’ attention. Stifel raised its price target for Ecolab to $307 from $285, citing the company’s progress towards surpassing the 18% operating profit margin (OPM) threshold in 2025 and reaching a 20% OPM by 2027. Similarly, Citi analysts increased their price target on Ecolab to $305 from $290, pointing to significant growth prospects for the company, including anticipated 2% volume growth for the fiscal year 2025 and potential price growth of 2-3%.
In the meantime, JPMorgan (NYSE:JPM) analyst Jeffrey Zekaukas increased the price target on Ecolab shares to $260 from $255, following the company’s fourth-quarter earnings report for 2024 and its earnings per share (EPS) guidance for 2025. Ecolab’s EPS guidance for 2025 projects a growth of 12% to 15% compared to the adjusted EPS of $6.66 for 2024.
Furthermore, Mizuho (NYSE:MFG) Securities updated its outlook on Ecolab shares, raising the price target to $302 from the previous $297. This adjustment follows Ecolab’s guidance for the calendar year 2025, projecting EPS between $7.42 and $7.62. Ecolab also reported a 14% year-over-year increase in adjusted operating income for the fourth quarter of 2024, amounting to $699 million.
Finally, Morgan Stanley (NYSE:MS) upgraded shares of Ecolab, shifting the rating from Equalweight to Overweight and increasing the price target to $280 from the previous $263. This upgrade was attributed to the potential value of Ecolab’s sales per unit, which the market has not fully recognized. These are the recent developments for Ecolab.
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