Ecolab (ECL) Among BofA’s List of Companies Set to Benefit from AI Data Center Buildout

​Ecolab Inc. (NYSE:ECL) ranks among our Best Liquid Cooling Stocks to Buy for AI Data Centers. The company acts as a global provider of water, hygiene, and infection‑prevention solutions that protect people and critical resources such as water and energy. It is also engaged in liquid cooling for data centers through its cooling-as-a-service program, which integrates water and cooling management platforms for high‑density and AI‑driven facilities.

​On May 5, the Bank of America Securities identified some mining and infrastructure companies that the firm believes are best positioned to benefit from AI data center buildout. Ecolab Inc. (NYSE:ECL) is included in the list of BofA. On April 29, the firm had lowered the price target on the stock from $345 to $335, while maintaining a Buy rating on the shares. The reduced price target was based on the firm cutting 2026 and 2027 EPS estimates to reflect the dilution in the second half of 2026 from CoolIt.

The company also released its fiscal Q1 2026 earnings on April 28. During the quarter, the company posted $4.07 billion in revenue, reflecting 10.04% year-over-year growth and surpassing estimates by $51.44 million. While the non-GAAP EPS of $1.7 was in line with the expectations, the GAAP EPS of $1.52 fell slightly short of the expectations by $0.08.

​Notably, the Global High Tech and Digital segment achieved 20% year-over-year growth. Moreover, management noted that combining the Global High Tech, OVIVO, and pending CoolIT businesses is expected to form a $1.5 billion unit, which will grow at high margins of 20% to 25%. Lastly, management maintained adjusted diluted EPS growth guidance of 12% to 15% for fiscal 2026, excluding the short-term impact from the pending CoolIT acquisition.

READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years. 

Disclosure: None. Follow Insider Monkey on Google News.