- Ecolab (ECL -1.2%) is lower after Citigroup upgrades shares to Buy from Neutral with a $141 price target, up from $127, while Stifel cuts its rating to Hold from Buy on valuation.
- Citi says ECL's energy business, which contributes ~25% of the company’s total sales, seems poised for an inflection point, adding that with ECL, investors get the "cyclical kicker” of energy plus the defensive growth characteristics of its core Institutional cleaning and Industrial businesses.
- But after yesterday's 3.5% gain, Stifel says ECL has exceeded its target and valuation is in-line to ahead of historical averages; the firm views Q2 results as inline holistically, and ECL's estimates of 4.9% top line growth and 12.2% EPS growth seem reasonable (Briefing.com).