MKM Partners Upgrades Pentair (PNR) to Buy

MKM Partners upgraded Pentair (NYSE: PNR) from Neutral to Buy and raised their price target to $54 from $47 citing meaningful margin expansion opportunity in the Flow Control business.

The firm comments, "We believe the greatest disappointment surrounding PNR shares over the past cycle has been underwhelming growth, both core and acquired, in the Water business – which looks to have bottomed on a core basis and is unlikely to be complicated by additional acquisitions over the medium term. That said, execution, particularly cost takeout, over the past several years to consolidate the US footprint and manage decrementals during the recession, was well above average in our view. Seeing room for management to duplicate this with the under-managed Flow Control business, we believe the company will drive solid earnings growth and retain its premium multiple, allowing shares to outperform."

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

Shares of Pentair closed at $45.75 yesterday.

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