Deutsche Bank downgrades Ecolab, says valuation premium 'too high' - InvestingChannel

Deutsche Bank downgrades Ecolab, says valuation premium ‘too high’

Deutsche Bank analyst David Begleiter downgraded Ecolab to Hold from Buy with a price target of $135, down from $165. The analyst says the stock’s 65%-80% valuation premium to the S&P 500 Index is “too high.” Ecolab has traded at a 65%-80% premium to the S&P due to its “resilient and highly predictable” double-digit earnings growth, but over the last two years, the company’s earnings “have not been resilient or predictable,” Begleiter tells investors in a research note. With management providing an initial 2023 outlook that was well below expectations due to a more challenging macro environment, particularly in Europe, and strong currency headwinds, Ecolab is tracking towards a third straight year of below trend performance, says the analyst.

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