Citi Upgrades Rating On PNR To Buy, Increases PT To $45

Citi, citing the acquisition of privately held filtration business, Norit, has upgraded its rating on Pentair, Inc. PNR from Hold to Buy and has increased the price target from $39 to $45. According to Citi, “the Norit deal marks a decisive and frankly unexpectedly bold move. Investors had been lulled into believing Pentair was content to make small bolt-ons in water – conservative and unlikely to move the needle. Instead, Pentair has locked-up one of the last independent filtration companies with economics that have attractive upside. Water (ex Pool) now represents a sector-high 56% of revenues.” PNR closed at $38.50 yesterday.