Pentair Shares Slip After Double Downgrade From JP Morgan To Underweight

JP Morgan analyst Stephen Tusa double downgraded Pentair PLC PNR to Underweight from Overweight with a price target of $65 (implying a downside of 15.42%), down from $75.
Tusa says the stock's valuation now more than discounts most of the upside from a better than expected outcome on earnings for the past two years, mainly on the back of Covid benefits in Aquatics.
The analyst warns of increased risks of downside to consensus forecasts on normalization in Aquatics. He mentions that at around 60% of EBITDA now, the unit has "likely seen its best days at what we see as an unsustainable peak,"
After the Q2 results, few analyst firms maintained their ratings and increased the price target on Pentair: Rosenblatt maintained buy, raised price target to $95 from $87, Oppenheimer maintained outperform, raised price target to $80 from $75, and Morgan Stanley maintained underweight, raised price target to $64 from $63.
Price Action: PNR shares closed lower by 2.64% at $76.97 on Thursday.

Momentum45.84

Growth30.20

Quality84.73

Value22.65

Short

Medium

Long

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