Nomura Securities Raises Price Target on Ecolab (ECL) to $98; Reiterates Reduce
- S&P 500, Nasdaq set records as tech, banks lead
- Texas Instruments (TXN) Tops Q4 EPS by 20c, Issues Solid Q1 Outlook
- Intuitive Surgical (ISRG) Tops Q4 EPS by 10c; $2B Accelerated Share Repurchase
- Seagate Technology (STX) Tops Q2 EPS by 30c
- After-Hours Stock Movers 01/24: (BOBE) (STX) (WDC) Higher; (NEWT) (MRCY) (CA) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Nomura Securities maintained a Reduce rating on Ecolab Inc. (NYSE: ECL), and raised the price target to $98.00 (from $94.00), following mid-year checks. Following -13% declines LTM, and a history of poor predictions, management
now pledges the cycle has bottomed and guides to an implied -6% decline in 2H.
Analyst Dan Dolev commented, "Following -13% LTM declines, mgmt. pledges the energy cycle has bottomed. Yet our proprietary energy model highlights sizable downside to its 2H implied guidance. Oddly, the stock has increased amid receding expectations. Yet we still see ~5% downside to FY17 cons. EPS as energy, legacy, and margin growth expectations remain overly optimistic, especially if the multi-year commodity cost tailwind reverses. With earnings quality in question (since ’12, ECL saw a ~20% dif. on avg. btw. reported and adj. EPS, ahead of 65% of the S&P) and a ~25x P/E, we reiterate REDUCE and see 20% pot. downside."
Shares of Ecolab Inc. closed at $122.77 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Zions Bancorp (ZION) PT Lowered to $49 at FIG Partners Following 4Q EPS Beat
- Bank of Marin Bancorp (BMRC) PT Raised to $70 at FIG Partners Following 4Q Report
- CBS Corp. (CBS): Raising PT On Higher Retransmission Fees - Needham
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesStandard & Poor's, Nomura, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!