Analysts at Credit Suisse Group AG started coverage on shares of Pentair PLC (NYSE:PNR) in a research report issued on Monday. The firm set a “neutral” rating and a $66.00 price target on the stock. Credit Suisse Group AG’s target price suggests a potential upside of 7.39% from the company’s previous close.
The analysts wrote, “Given signs of a bottoming in the latter, and PNR’s late-cycle sales mix, we think this out-growth is unlikely to accelerate. While its markets are strong now, we note that PNR’s cyclicality was no lower than the sector average during the 2009 downturn,” analyst Julian Mitchell wrote in a note. That said, Mitchell noted that the company should continue to record strong margin growth, while its operating margins have increased by about 300bps over the past three years.Related Link: Cowen & Company Downgrades Pentair To Underperform”We view five business units (-30 percent of sales) as ‘under-earning’ today, in that they offer 300bps+ of margin expansion opportunity; we assume that two-thirds of this opportunity (equating to $0.18–0.20 of EPS) is indeed realized in the next few years,” Mitchell continued. Meanwhile, investors would focus on how the company deploys its V&C proceeds, while the company is keen to put the remaining balance sheet capacity of $1.4 billion to work.Mitchell said although the move would add $0.45 to EPS, it would increase the leverage “at the very top of the large-cap EE/MI leverage spectrum (implying ~3X ND /EBITDA), and back to a level which management apparently found too high.”Notably, the main aim behind the sale of V&C was to reduce the leverage.”There is a risk that PNR uses the proceeds from selling assets that may be close to a cyclical trough (V&C), to buy businesses that may be close to a cyclical peak (in Water, TS), and the company seems willing to return to a similar balance sheet leverage level (3X) as before the V&C sale took place,”
Several other equities research analysts also recently issued reports on PNR. Robert W. Baird reaffirmed a “neutral” rating and set a $60.00 price target on shares of Pentair PLC in a research note on Tuesday, June 7th. Seaport Global Securities raised shares of Pentair PLC from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $59.00 to $70.00 in a research note on Friday, June 10th. FBR & Co raised shares of Pentair PLC from a “market perform” rating to an “outperform” rating in a research note on Friday, June 10th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Pentair PLC in a research note on Monday, June 27th. Finally, Vertical Research started coverage on shares of Pentair PLC in a research report on Tuesday, July 19th. They issued a “hold” rating for the company. Two investment analysts have rated the stock with a sell rating, fifteen have given a hold rating and six have given a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $59.81.
Shares of Pentair PLC (NYSE:PNR) opened at 61.46 on Monday. Pentair PLC has a 1-year low of $41.57 and a 1-year high of $66.99. The stock’s 50 day moving average is $63.05 and its 200 day moving average is $59.55. The stock’s market capitalization is $11.13 billion.
Pentair PLC (NYSE:PNR) last released its quarterly earnings results on Thursday, July 28th. The company reported $1.11 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.09 by $0.02. Pentair PLC had a net margin of 6.91% and a return on equity of 17.25%. The firm had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.72 billion. During the same quarter in the previous year, the firm posted $1.08 EPS. The firm’s quarterly revenue was up 4.3% on a year-over-year basis. On average, equities analysts forecast that Pentair PLC will post $3.12 EPS for the current year.
In other Pentair PLC news, insider Mark C. Borin sold 13,326 shares of the business’s stock in a transaction dated Tuesday, August 23rd. The shares were sold at an average price of $65.19, for a total transaction of $868,721.94. Following the sale, the insider now directly owns 32,209 shares in the company, valued at approximately $2,099,704.71. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director T Michael Glenn sold 10,000 shares of the business’s stock in a transaction dated Friday, September 2nd. The stock was sold at an average price of $62.61, for a total transaction of $626,100.00. Following the sale, the director now owns 22,535 shares in the company, valued at $1,410,916.35. The disclosure for this sale can be found here. Company insiders own 2.30% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in PNR. Alpine Investment Management LLC bought a new stake in Pentair PLC during the first quarter worth approximately $62,461,000. BlackRock Institutional Trust Company N.A. increased its stake in Pentair PLC by 0.9% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,652,844 shares of the company’s stock worth $252,463,000 after buying an additional 39,437 shares during the last quarter. Franklin Resources Inc. increased its stake in Pentair PLC by 1.0% in the first quarter. Franklin Resources Inc. now owns 8,504,908 shares of the company’s stock worth $461,476,000 after buying an additional 82,320 shares during the last quarter. Prudential Financial Inc. increased its stake in Pentair PLC by 3.9% in the first quarter. Prudential Financial Inc. now owns 255,511 shares of the company’s stock worth $13,864,000 after buying an additional 9,700 shares during the last quarter. Finally, Teachers Advisors Inc. increased its stake in Pentair PLC by 17.6% in the first quarter. Teachers Advisors Inc. now owns 261,609 shares of the company’s stock worth $14,195,000 after buying an additional 39,131 shares during the last quarter. Institutional investors own 90.53% of the company’s stock.
About Pentair PLC
Pentair, Inc (Pentair) is a focused diversified industrial manufacturing company. The Company operates in two segments: Water & Fluid Solutions and Technical Products. Water & Fluid Solutions is providing products and systems used worldwide in the movement, storage and treatment of water. Technical Products is engaged in the global enclosures and thermal management markets, designing and manufacturing standard, modified and custom enclosures that house and protect sensitive electronics and electrical components and protect the people that use them.
Receive News & Ratings for Pentair PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pentair PLC and related companies with MarketBeat.com's FREE daily email newsletter.