Oppenheimer analyst Scott Schneeberger maintained a Buy rating on Ecolab Inc (NYSE: ECL) yesterday and set a price target of $156. The company’s shares closed yesterday at $148.17, close to its 52-week high of $150.46.
Schneeberger commented:
“2Q18 adjusted EPS of $1.27 (+13% y/y) was consistent with expectations. 2Q18 revenue increased 7% y/y, which was also consistent with expectations. 2Q18 Acquisition-adjusted, fixed-currency revenue grew +5% y/y with Institutional/Other segments growing 6%/5%/3%/8% y/y, respectively. 2018 adjusted EPS guidance was maintained at $5.30 to $5.50 (+13% to +18%)/we’re maintaining our 2018E/2019E adjusted EPS of $5.40 (+15% y/y)/$5.95 (+10% y/y), respectively. Ecolab anticipates 2H18 accelerating double-digit adjusted EPS growth as pricing builds y/y vs. raw material cost inflation/system investment cost headwinds y/y. It announced an efficiency initiative expected to realize $200M of run- rate cost savings by 2021. Following muted growth in recent years, our 2018E/2019E adjusted EPS estimates represent double-digit growth y/y. Our price target increases from $153 to $156.”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 12.0% and a 68.8% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, Landstar System Inc, and General Finance.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ecolab Inc with a $160.43 average price target, representing an 8.3% upside. In a report issued on July 24, Canaccord Genuity also maintained a Buy rating on the stock with a $160 price target.
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Based on Ecolab Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $351 million. In comparison, last year the company had a net profit of $297 million.
Based on the recent corporate insider activity of 129 insiders, corporate insider sentiment is neutral on the stock.
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Ecolab, Inc. engages in the provision of products and services in the field of water, hygiene, and energy. It operates through the following segments: Global Industrial, Global Institutional, Global Energy, and Other.
