Pentair: Mizuho maintains Outperform, raises PT to $122 from $118.

Pentair: Mizuho maintains Outperform, raises PT to $122 from $118.

Mizuho Securities has upgraded its price target for Pentair plc (PNR) to $122 from $118, while maintaining an Outperform rating. This move comes on the heels of the company's strong second-quarter earnings report, which showcased robust financial performance and an improved outlook for the future.

Pentair reported record quarterly results across all four key metrics: sales, adjusted operating income, return on sales, and adjusted EPS. The company's sales increased by 2% to $1.1 billion, while adjusted operating income rose by 9% to $297 million. Return on sales expanded to 26.4%, and adjusted EPS climbed to $1.39, up 14% year-over-year. Free cash flow for the quarter reached $596 million, up 14% year-over-year [2].

In addition to the strong quarterly performance, Pentair raised its full-year 2025 guidance. The company now expects sales growth of approximately 1% to 2% and adjusted EPS of $4.75 to $4.85, up 11% at the midpoint versus 2024. Pool sales are expected to grow by 6% to 7%, while Flow sales are projected to be up by low single digits. Water Solutions sales are expected to decline by mid-single digits, with core sales remaining approximately flat [2].

Mizuho's upgrade reflects the company's positive outlook and the potential for continued growth. The upgrade also underscores the market's confidence in Pentair's ability to navigate the current economic environment and deliver strong financial results.

References:
[1] https://economictimes.indiatimes.com/markets/stocks/earnings/paytm-q1-results-co-swing-to-profit-at-rs-122-crore-vs-yoy-loss-revenue-jumps-28/articleshow/122835189.cms
[2] https://seekingalpha.com/news/4470181-pentair-raises-2025-eps-guidance-to-4_75-4_85-amid-transformation-savings-and-pool-growth