Pentair PLC
PNR: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$87.00 | Jwbpv | Gdggxwtx |
Pentair Earnings: Transformation Initiatives Continue to Drive Margin Expansion
We are maintaining our $70 fair value estimate for narrow-moat-rated Pentair after the company reported third-quarter results, as our slightly more muted near-term revenue growth projections were offset by the time value of money. Despite a 7% year-over-year core sales decline in the third quarter, we were encouraged by Pentair’s 140-basis-point year-over-year adjusted operating margin expansion, from 19.6% to 21%, driven by pricing, productivity, and margin accretion from the Manitowoc acquisition.