Nomura Securities Raises Price Target on Ecolab (ECL) to $98; Reiterates Reduce

August 22, 2016 9:08 AM EDT
Get Alerts ECL Hot Sheet
Price: $120.50 +0.74%

Rating Summary:
    10 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
Trade ECL Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your 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."

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 $122.77 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Related Entities

Standard & Poor's, Nomura, Earnings

Add Your Comment