Stifel analyst Nathan Jones has upgraded his recommendation for Zurn Elkay Water Solutions Corporation (ZWS, Financial) from Hold to Buy, revising the price target to $34 from the previous $39. This change comes as the firm reassesses its projections in response to current tariff developments.
Jones emphasizes Zurn Elkay's strong business foundations and capable management, viewing these as critical factors enabling the company to adeptly handle the fluctuating market conditions. Despite earlier concerns regarding the supply chain—stemming from the fact that roughly 25% of the company’s direct material expenditures occur in China, with another 25% in Southeast Asia—Jones suggests that the existing tariff situation presents an entry point for investors looking to acquire stakes in a well-managed firm.
The analyst underscores Zurn Elkay’s proven expertise in managing supply chain challenges and exerting pricing power, which are deemed vital for navigating the current economic landscape. As such, Stifel regards the current scenario as a favorable opportunity for investors to invest in a company poised for long-term growth and stability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Zurn Elkay Water Solutions Corp (ZWS, Financial) is $37.43 with a high estimate of $42.00 and a low estimate of $29.00. The average target implies an upside of 27.09% from the current price of $29.45. More detailed estimate data can be found on the Zurn Elkay Water Solutions Corp (ZWS) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Zurn Elkay Water Solutions Corp's (ZWS, Financial) average brokerage recommendation is currently 2.6, 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 Zurn Elkay Water Solutions Corp (ZWS, Financial) in one year is $33.37, suggesting a upside of 13.31% from the current price of $29.45. 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 Zurn Elkay Water Solutions Corp (ZWS) Summary page.
