Oppenheimer analyst Bryan Blair has maintained their neutral stance on WTS stock, giving a Hold rating on November 3.
Bryan Blair has given his Hold rating due to a combination of factors that affect the performance of Watts Water Technologies. The company reported strong 3Q23 results, with adjusted EPS of $2.04, surpassing both Blair’s and consensus estimates, primarily driven by high profitability in the Americas. However, the European sector fell short of expectations. Overall, the company’s total 3Q sales grew by 3% year over year, despite organic revenue remaining flat. The company’s year-to-date performance and 4Q expectations prompted an upward revision of their 2023 organic sales guidance to flat year over year.
In Blair’s assessment, the company’s valuation, which is in the low-20s P/E, adequately reflects the prospects of organic growth and earnings. He sees the potential for a more aggressive capital deployment as the next significant catalyst for Watts Water Technologies, with Bradley now becoming a swing factor. While the Americas’ sales showed a slight increase, solid growth in core valve products was largely counterbalanced by sharp declines in gas connectors, marine instrumentation, and radiant heating products. The company’s adjusted operating margin improved significantly, with benefits from pricing, mix, and productivity offsetting the impacts of inflation, lower volume, and increased investments.
In another report released on November 3, Robert W. Baird also maintained a Hold rating on the stock with a $191.00 price target.
See today’s best-performing stocks on TipRanks >>
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WTS in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Watts Water Technologies (WTS) Company Description:
Watts Water Technologies, Inc. engages in the manufacture and provision of products for water conservation, safety, and flow control. It operates through the following geographic segments: Americas, Europe, and Asia-Pacific, Middle East and Africa. Its services include plumbing and flow control solutions, water quality and conditioning, water reuse and drainage, heating, ventilation, and air conditioning, and municipal waterworks. The company was founded in 1985 and is headquartered in North Andover, MA.
Read More on WTS:
- Watts Water sees 2023 organic revenue growth flat, consensus $2.02B
- Watts Water sees Q4 organic revenue growth down 6%-1%, consensus $516.53M
- Watts Water reports Q3 adjusted EPS $2.04, consensus $1.83
- WTS Earnings this Week: How Will it Perform?
- Watts Water price target raised to $165 from $160 at TD Cowen
