Analyst Boosts Price Target for Zurn Elkay Water, Ticker ZWS

Baird has raised its price target for Zurn Elkay Water (ZWS) from $39 to $48, maintaining a Neutral rating. The company's robust Q2 performance and optimistic outlook for future growth drove the revision. Zurn Elkay's diverse portfolio of clean water solutions caters to drinking water, hygiene, and sustainable water management needs, with a market capitalization of approximately $7.21 billion.

Baird has revised its price target for Zurn Elkay Water Solutions (ZWS) from $39 to $48, maintaining a Neutral rating. The decision was driven by the company's robust Q2 2025 performance and optimistic outlook for future growth.

Zurn Elkay Water Solutions, a leading provider of engineered water management products, reported its Q2 2025 results on July 29, 2025. The company's non-GAAP earnings per share (EPS) of $0.42 exceeded analyst expectations by 16.7%, while GAAP revenue reached $444.5 million, surpassing estimates by 4.6% [2]. The quarter was marked by strong margin expansion and a significant jump in free cash flow, which was up by 26.7% year-over-year to $101.6 million.

Baird's revised price target reflects the company's diverse portfolio of clean water solutions, which caters to drinking water, hygiene, and sustainable water management needs. The company's market capitalization stands at approximately $7.21 billion. The analyst firm cited Zurn Elkay's strong Q2 performance and the company's ability to navigate ongoing tariff challenges as key factors in the price target revision.

Looking ahead, Zurn Elkay has raised its full-year 2025 guidance for core sales growth, adjusted EBITDA, and free cash flow. The company now forecasts at least 5% core sales growth for the year, with adjusted EBITDA projected to be between $420 million and $430 million, and free cash flow (non-GAAP) guidance increased to approximately $300 million [2].

Investors should monitor the impact of customer order pull-forwards, tariff policy developments, and ongoing supply chain repositioning. Zurn Elkay's strong financial performance and strategic focus on product innovation and sustainability make it a compelling investment option for those seeking exposure to the water management sector.

References:
[1] https://finance.yahoo.com/news/zurn-elkay-water-solutions-corp-132825303.html
[2] https://www.nasdaq.com/articles/zurn-elkay-zws-q2-eps-jumps-27