Nomura Securities Starts Ecolab Inc. (ECL) at Reduce

Nomura Securities initiates coverage on Ecolab Inc. (NYSE: ECL) with a Reduce rating and a price target of $97.00.

Analyst Dan Dolev commented, "We initiate coverage of Ecolab Inc. (ECL) with a Reduce rating and $97 target price. ECL’s successful formula and strong execution have helped drive a solid double-digit long-term EPS CAGR. But does a rich history necessarily presage a bright future? Our detailed revenue and margin analyses suggest management’s 2020 earnings aspirations are likely overly ambitious given slowing organic growth excluding energy, meager margin expansion excluding M&A synergies, and greater cyclicality due to ill-timed confidence in energy. With shares trading at 24x 2017E EPS, ECL trades on past glories, as valuation has yet to adjust to the new normal, in our view."

For an analyst ratings summary and ratings history on Ecolab Inc. click here. For more ratings news on Ecolab Inc. click here.

Shares of Ecolab Inc. closed at $115.18 yesterday.

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