Demystifying Ecolab: Insights From 15 Analyst Reviews

In the latest quarter, 15 analysts provided ratings for Ecolab ECL, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 5 9 0 0
Last 30D 0 0 1 0 0
1M Ago 0 2 0 0 0
2M Ago 0 2 7 0 0
3M Ago 1 1 1 0 0

In the assessment of 12-month price targets, analysts unveil insights for Ecolab, presenting an average target of $232.6, a high estimate of $260.00, and a low estimate of $216.00. Witnessing a positive shift, the current average has risen by 10.44% from the previous average price target of $210.62.

price target chart

Interpreting Analyst Ratings: A Closer Look

The perception of Ecolab by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Vincent Andrews Morgan Stanley Raises Equal-Weight $240.00 $230.00
Ashish Sabadra RBC Capital Maintains Outperform $238.00 -
Manav Patnaik Barclays Raises Overweight $260.00 $225.00
Seth Weber Wells Fargo Raises Overweight $250.00 $240.00
Andrew Wittmann Baird Raises Neutral $232.00 $184.00
John McNulty BMO Capital Raises Market Perform $227.00 $212.00
Patrick Cunningham Citigroup Raises Neutral $237.00 $220.00
Ashish Sabadra RBC Capital Maintains Outperform $238.00 -
John Roberts Mizuho Raises Neutral $216.00 $210.00
Manav Patnaik Barclays Raises Equal-Weight $225.00 $215.00
Shlomo Rosenbaum Stifel Raises Hold $225.00 $193.00
Jeffrey Zekaukas JP Morgan Raises Neutral $220.00 $200.00
Ashish Sabadra RBC Capital Raises Outperform $238.00 $213.00
Steve Byrne B of A Securities Raises Neutral $216.00 $185.00
Joshua Spector UBS Raises Buy $227.00 $211.00

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 Ecolab. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ecolab compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Ecolab's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Ecolab's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Ecolab analyst ratings.

Discovering Ecolab: A Closer Look

Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, hospitality, healthcare, and life sciences markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the U.S. market and is growing its presence abroad.

Understanding the Numbers: Ecolab's Finances

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Ecolab's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 7.28%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Ecolab's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.29%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Ecolab's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.12%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.85%, the company showcases effective utilization of assets.

Debt Management: Ecolab's debt-to-equity ratio stands notably higher than the industry average, reaching 1.09. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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

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