Ecolab's Return To Pre-Pandemic Levels - Double-Digit EPS Growth And Margin Recovery Expected By FY25: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Ashish Sabadra has reiterated an Outperform rating on Ecolab Inc. (ECL) with a price target of $213. Sabadra expects Ecolab to return to pre-pandemic levels by FY25 with double-digit EPS growth and margin recovery. The analyst anticipates a 9.4% y/y revenue growth in 2Q23, above the consensus of 7.3%, driven by pricing gains and volume growth in all segments. However, concerns about raw material inflation persist. ECL shares are currently trading higher by 0.43% to $188.34.
July 18, 2023 | 7:33 pm
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Ecolab Inc. (ECL) is expected to return to pre-pandemic levels by FY25 with double-digit EPS growth and margin recovery, according to RBC Capital Markets analyst Ashish Sabadra. The analyst anticipates a 9.4% y/y revenue growth in 2Q23, driven by pricing gains and volume growth in all segments. ECL shares are currently trading higher.
The positive outlook from RBC Capital Markets analyst Ashish Sabadra, including the expectation of double-digit EPS growth and margin recovery by FY25, is likely to boost investor confidence in Ecolab Inc. (ECL). This, coupled with the anticipation of a 9.4% y/y revenue growth in 2Q23, is likely to have a positive impact on ECL's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100