Stifel has raised its rating for Watts Water Technologies, Inc. (WTS, Financial) from Hold to Buy, reflecting increased confidence in the company’s growth prospects. The investment firm simultaneously boosted its price target for the stock from $219 to $229.
The decision to upgrade comes amid expectations of a mild industrial recession in the U.S. predicted to occur between the latter half of 2025 and the first half of 2026, influenced by domestic trade policies. Stifel's analysis suggests that Watts Water is well-positioned to gain from these trade measures due to its higher reliance on domestic production, which contrasts with competitors who depend more on Chinese sourcing.
This assessment indicates that Watts Water could outperform its peers in navigating the anticipated economic challenges, accentuated by shifting trade dynamics. Investors are advised to consider these factors as they align with Stifel's optimistic outlook on the company's strategic positioning.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Watts Water Technologies Inc (WTS, Financial) is $217.00 with a high estimate of $238.00 and a low estimate of $180.00. The average target implies an upside of 9.44% from the current price of $198.29. More detailed estimate data can be found on the Watts Water Technologies Inc (WTS) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Watts Water Technologies Inc's (WTS, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Watts Water Technologies Inc (WTS, Financial) in one year is $200.29, suggesting a upside of 1.01% from the current price of $198.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Watts Water Technologies Inc (WTS) Summary page.
