Peeling Back The Layers: Exploring Pentair Through Analyst Insights

In the preceding three months, 6 analysts have released ratings for Pentair PNR, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Pentair and provided 12-month price targets. The average target is $79.0, accompanied by a high estimate of $83.00 and a low estimate of $70.00. This current average has increased by 3.67% from the previous average price target of $76.20.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Pentair. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Pentair. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Pentair compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Pentair's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Pentair's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Pentair analyst ratings.

About Pentair

Pentair is a global leader in the water treatment industry, with 10,000 employees and a presence in 25 countries. Pentair's business is organized into two segments: consumer solutions and industrial and flow technologies. The company offers a wide range of water solutions, including energy-efficient swimming pool equipment, filtration solutions, and commercial and industrial pumps. Pentair generated approximately $4.1 billion in revenue and $768 million in adjusted operating income in 2022.

Pentair's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Pentair faced challenges, resulting in a decline of approximately -4.39% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Pentair's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.09%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.42%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Pentair's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 2.04%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.69, caution is advised due to increased financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.