Update shared on 21 Nov 2025
Fair value Increased 6.90%Analysts have raised their fair value estimate for Energy Recovery from $17.40 to $18.60 per share. They cite increased confidence in both ongoing CO2 refrigeration performance and renewed OEM uptake expectations.
Analyst Commentary
Recent analyst updates reflect both optimism and caution regarding Energy Recovery’s near-term performance and growth prospects. The following summarizes key points from recent Street research:
Bullish Takeaways- Bullish analysts have increased their price targets, signaling a stronger outlook for Energy Recovery’s valuation potential.
- Consistent performance in CO2 refrigeration has reinforced confidence in the company’s core technology and its ability to deliver expected operational results.
- Initiations of coverage with positive ratings highlight expectations for outperformance, driven by Energy Recovery’s growth trajectory and expanding market opportunities.
- A renewed focus on original equipment manufacturer partnerships is seen as a positive catalyst for future revenue acceleration, supporting a higher fair value estimate.
- Some analysts remain cautious due to delays in original equipment manufacturer uptake. This is currently lagging behind prior expectations and could impact short-term execution.
- There are concerns regarding the pace and consistency of adoption in key growth segments, particularly as market timing remains sensitive for further expansion.
- Cautious analysts note that while performance has met targets, ongoing execution risks could limit near-term upside unless management delivers consistent results.
Valuation Changes
- Fair Value Estimate: Increased from $17.40 to $18.60 per share, reflecting a moderate upward adjustment in analyst expectations.
- Discount Rate: Decreased slightly from 8.30% to 8.26%, indicating a marginally lower perceived risk profile.
- Revenue Growth: Edged down from 18.75% to 18.64%, showing a minor reduction in projected top-line expansion.
- Net Profit Margin: Declined modestly from 27.62% to 27.22%, suggesting slightly lower profitability forecasts.
- Future P/E Ratio: Rose from 14.85x to 18.05x, reflecting increased valuation multiples assigned to expected earnings.
Disclaimer
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