Jefferies Boosts Price Target on Ecolab (ECL) to $82
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Price: $88.08 -1.13%
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 20 | Down: 41 | New: 13
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 20 | Down: 41 | New: 13
Trade ECL Now!
Jefferies reiterated a Buy on Ecolab Inc. (NYSE: ECL) and raised its price target to $82.00 (from $77.00) following the company’s Q3 results.
In the view of analysts at Jefferies, the investment case for Ecolab hinges on their ability to drive top line growth through penetration of the emerging markets. Market share gains, margin expansion, pricing discipline are also important considerations. A recovery in food & beverage, and finally, the effective use of cash for M&A, are key factors.
"Ecolab trades at 10.6x 2013E EBITDA. Our $82 price target is based on 11.0x 2014E EBITDA and is consistent with our mid-cycle and peak valuation models for the chemical sector, including DCF, 10-year historical ROA analysis, and regressions on sector valuations and profitability. Key risks: dilutive M&A and competitive dynamics," wrote analyst Laurence Alexander.
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 $70.82 yesterday, with a 52 week range of $52.27-$70.95.
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In the view of analysts at Jefferies, the investment case for Ecolab hinges on their ability to drive top line growth through penetration of the emerging markets. Market share gains, margin expansion, pricing discipline are also important considerations. A recovery in food & beverage, and finally, the effective use of cash for M&A, are key factors.
"Ecolab trades at 10.6x 2013E EBITDA. Our $82 price target is based on 11.0x 2014E EBITDA and is consistent with our mid-cycle and peak valuation models for the chemical sector, including DCF, 10-year historical ROA analysis, and regressions on sector valuations and profitability. Key risks: dilutive M&A and competitive dynamics," wrote analyst Laurence Alexander.
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 $70.82 yesterday, with a 52 week range of $52.27-$70.95.
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