Energy Recovery's Price Target Lifted to $23 Amid Bullish CO2 Refrigeration Outlook

Energy Recovery's price target has been lifted to $23, driven by analysts' fine-tuning of the math rather than a rewrite of the long-term opportunity. The shift is mostly about how they view the pace and reliability of CO2 refrigeration adoption. Analysts see CO2 refrigeration as performing as expected, with original equipment manufacturer uptake running a year behind earlier expectations. Timing risk for growth is highlighted, but the long-term growth potential still looks attractive enough to support the higher valuation anchor.