Jefferies sees Ecolab's new products to support pricing tailwind; raises PT

Jefferies raises price target on water solutions company Ecolab ECL.N to $310 from $295

New price target represents an 18.6% upside to the stock's last close

Brokerage says ECL's latest cost-saving technologies will help drive 200-300 basis points in annual sales growth from market share gains and support strategic pricing flexibility

"Surcharges will offset cost increases, and with the cost saving from new products... company can increase customer prices, regardless of the macro environment," - Jefferies

Brokerage estimates price hikes and productivity gains to lift earnings before interest and taxes (EBIT) margins to 18.1% in 2026

"Consumer confidence remains weak, but demand from the hospitality is trending higher, and pest elimination, data center, electronics, and water management demand has yet to cool," - Jefferies

13 of 27 brokerages rate the stock "buy" or higher, 14 "hold"; median PT is $274 - data compiled by LSEG

Up till last close, stock up 13.1% YTD