KeyBanc analyst Jeffrey D. Hammond downgraded Zurn Elkay Water Solutions Corporation (NYSE:ZWS) to Sector Weight from Overweight due to a weaker non-residential backdrop and emerging incremental cracks in demand. While institutional end markets remain relatively stable, commercial sales are weaker, and the analyst believes that shares are priced for optimistic outcomes. The secular momentum in drinking water may provide some offset, but upward earnings momentum is expected to be challenging. The analyst sees ZWS's long-term outgrowth as less dependent on Hygienics, which may now act more cyclically. The risk/reward for ZWS is now viewed as more balanced, and further re-rating and upward revisions may be difficult amidst weaker demand.