RBC Lifts Pentair Target as Earnings Quality, Pricing Power Impress

Pentair plc (NYSE: PNR) is one of the most profitable manufacturing stocks to buy now.

On October 22, 2025, RBC Capital Markets maintained its “Outperform” rating on Pentair and raised the 12‑month price target from US$121.00 to US$124.00. In commentary accompanying the update, RBC highlighted that Pentair delivered a “solid earnings quality” beat in its Q3 results, with a 160 basis‑point expansion in return on sales and a strong incremental of around 82 %.

RBC Lifts Pentair Target as Earnings Quality, Pricing Power Impress

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The note also emphasized the company’s ability to enact tariff‑mitigating price increases “with no signs of demand destruction”, and pointed to roughly a 16.7 % return on invested capital, up around 120 basis‑points. RBC further flagged that roughly 75% of Pentair’s business comes from replacement and aftermarket markets, giving the company a more defensive footing even amid broader industrial softness.

Pentair  plc (NYSE: PNR), together with its subsidiaries, provides water and fluid solutions globally, operating across segments including Flow, Water Solutions and Pool for residential, commercial and industrial use.

While we acknowledge the potential of PNR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PNR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.