Citi Keeps Buy Rating on Pentair with $126 Price Target

Citi analyst Andrew Kaplowitz maintains a Buy rating on Pentair (PNR) with a $126.00 price target. The company has a Strong Buy analyst consensus and a price target consensus of $114.82, implying a 9.49% upside from current levels. Barclays also maintained a Buy rating on the stock with a $117.00 price target. PNR's market cap is $17.25B and has a P/E ratio of 28.61. Corporate insider sentiment is negative, with an increase in insiders selling shares in April 2025.

Pentair (PNR) has been the subject of increased analyst attention, with several firms recently raising their price targets and maintaining positive ratings on the stock. Citi analyst Andrew Kaplowitz, for instance, maintains a Buy rating with a $126.00 price target, while Barclays also holds a Buy rating with a $117.00 target. These moves come amidst a strong consensus rating of Strong Buy and a price target consensus of $114.82, implying a 9.49% upside from current levels [1].

The latest earnings reports have been favorable, with Pentair's second-quarter results showing robust financial performance. The company's sales increased by 2% to $1.1 billion, and adjusted operating income rose by 9% to $297 million [2]. Additionally, Pentair's free cash flow reached $596 million, up 14% year-over-year. The company's strong financial health is reflected in its GOOD financial health score, supported by strong profitability metrics [1].

Despite the positive outlook, corporate insider sentiment has been negative, with an increase in insiders selling shares in April 2025. Director David A. /Wi Jones sold 6,558 shares, representing a 19.95% decrease in their position [3]. This activity could indicate a cautious stance among insiders, despite the positive analyst ratings.

Pentair's market capitalization stands at $17.25 billion, with a price-to-earnings ratio of 28.61. The company's strong return profile is seen as undervalued at current trading levels, with above-peer returns projected for 2026 [1]. The firm's dividend payout ratio is 25.84%, and it has maintained dividend payments for 50 consecutive years, reflecting its commitment to financial stability [1].

Institutional investors also show confidence in Pentair, with 92.37% of the company's stock owned by institutional investors and hedge funds. Proficio Capital Partners LLC, Commonwealth Equity Services LLC, Mizuho Securities USA LLC, KLP Kapitalforvaltning AS, and LPL Financial LLC have recently increased their holdings in the stock [3].

While the analysts' positive ratings and strong financial performance indicate a positive outlook for Pentair, the insider selling activity suggests a level of caution. Investors should carefully consider both the positive and negative signals before making investment decisions.

References:
[1] https://za.investing.com/news/analyst-ratings/da-davidson-raises-pentair-stock-price-target-to-19-from-17-maintains-buy-93CH-3796404
[2] https://www.ainvest.com/news/pentair-mizuho-maintains-outperform-raises-pt-122-118-2507/
[3] https://www.marketbeat.com/instant-alerts/pentair-nysepnr-shares-gap-down-heres-why-2025-07-22/