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PNR: Margin Strength Will Drive Gains Amid Accelerating Data Center Demand

Update shared on 20 Nov 2025

Fair value Increased 0.13%
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AnalystConsensusTarget's Fair Value
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1Y
-4.3%
7D
-4.9%

Pentair's analyst price target has been modestly increased, rising from $121.53 to $121.68. Analysts cited continued best-in-class margin execution and growing demand in select end markets following recent quarterly results.

Analyst Commentary

Bullish Takeaways
  • Bullish analysts highlight Pentair’s execution on margins, which they describe as among the best in its sector.
  • Improved price targets reflect continued confidence in the company’s growth trajectory following strong quarterly results.
  • There is optimism surrounding accelerating demand in segments such as data centers, which is expected to drive further revenue growth.
  • Consistent Buy and Overweight ratings indicate broad belief in Pentair’s ability to maintain robust performance and capitalize on industry trends.
Bearish Takeaways
  • Despite overall positive sentiment, there is acknowledgement among some analysts that demand trends remain mixed in markets outside of high-growth sectors.
  • Cautious analysts point to potential bifurcation in performance, with not all end markets enjoying the same strength as those related to data centers.
  • Uncertainty persists around the durability of growth in lower-performing segments, which could limit upside if broader momentum does not materialize.

What's in the News

  • Pentair updated its full-year 2025 earnings guidance, raising GAAP EPS estimates to approximately $3.98 to $4.03. This reflects 6% to 8% growth versus the prior year, with expected sales to increase by about 2% (Key Developments).
  • The company introduced fourth quarter 2025 guidance, projecting GAAP EPS of approximately $1.03 to $1.08. This represents an increase of 4% to 9% year-over-year, with anticipated sales growth of 3% to 4% compared to the same quarter in 2024 (Key Developments).
  • Between July and October 2025, Pentair repurchased 475,265 shares for $50.02 million, completing its $475.1 million share buyback program initiated in December 2020 (Key Developments).
  • Chief Financial Officer Robert P. Fishman will resign effective March 1, 2026. Nicholas J. Brazis has been named as his successor and will assume the CFO role from March 1, 2026, while becoming Senior Vice President, Finance from November 1, 2025 (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from $121.53 to $121.68. This reflects a modest increase in perceived fair value.
  • Discount Rate has increased from 8.90% to 9.05%. This indicates a marginal rise in the expected return required by investors.
  • Revenue Growth expectations remain unchanged at approximately 4.46%.
  • Net Profit Margin is stable, holding steady at about 20.86%.
  • Future P/E multiple has increased slightly from 25.26x to 25.72x. This shows a minor upward adjustment in anticipated earnings valuation.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.