Pentair (PNR) PT Lowered to $85 at Baird

Baird analyst Michael Halloran lowered the price target on Pentair (NYSE: PNR) to $85.00 (from $86.00) while maintaining a Neutral rating.

The analyst commented: "In recent public commentary, PNR suggested the market was tracking down - LSD-MSD% in the current environment, better than POOL’s updated -6.5% industry expectation. Recognizing mix variance, PNR took a more conservative approach to initial industry expectations than POOL, though the potential for further destocking remains on the table. We believe this implies 2-5pts of top-line risk to current estimates (every -1% of Pool revenue represents ~$0.03/sh annually), mitigated by margin levers from internal improvement initiatives. We are lowering our 2024 estimates to the low end of management’s full-year guidance range (our updated 2Q24 assumption is below the range), though see a wide range of outcomes (Pool/WS risk add incremental downside, margins and Pool timing variances are upside levers). Ultimately, POOL’s preannouncement is another indicator that a bottom is materializing in 2024 (key catalyst) but remain patient for now."

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