BMO Maintains Outperform Rating on Ecolab (ECL) Despite Post-Earnings Share Decline

Ecolab Inc. (NYSE:ECL) ranks among the stocks in Bill Gates’ portfolio that analysts are watching. On October 30, BMO Capital maintained its Outperform rating on Ecolab Inc. (NYSE:ECL) but reduced its price target from $310 to $307 for the company’s shares. Despite Ecolab’s usual safe-haven status, BMO Capital sees the 7% sell-off in shares following the company’s earnings report as an alluring buying prospect.

Ecolab’s third-quarter results showed a 3% increase in organic sales and a 4% increase in reported sales. The company’s growth was fueled by rising pricing, increased volume, and a substantial rise in organic operating income margin, which hit 18.7%. However, given the gains from the divestiture of the global surgical solutions business last year, the reported operating income dropped by 27%.

Amid difficult market conditions, BMO states that Ecolab Inc. remains on course to meet its 12–15% EPS target in 2025. Even in a subpar macroeconomic climate, management anticipates comparable growth in 2026.

Ecolab Inc. is a global leader in water, hygiene, and energy technologies. Its solutions serve a wide range of industries, including agriculture, food safety, and industrial processing.

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This article is originally published at Insider Monkey.