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Water Infrastructure Upgrades Will Fuel Demand In Urban Markets

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WTS
AnalystConsensusTarget
Not Invested
Published 28 Aug 2024

Update shared on08 Aug 2025

Fair value Increased 9.47%
Previous
AnalystConsensusTarget's Fair Value
US$272.80
2.8% overvalued intrinsic discount
20 Aug
US$280.57
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1Y
46.8%
7D
3.6%

Analysts have raised their price target for Watts Water Technologies to $272.80, citing anticipated tariff mitigation, favorable China tariff adjustments, improved near-term EPS outlook, and increased confidence in the company’s digital strategy.


Analyst Commentary


  • Bullish analysts cite anticipated tariff mitigation and delayed tariff impacts, leading to a more favorable near-term EPS outlook.
  • Positive China tariff adjustments alone are expected to contribute over $0.40 per share relative to prior forecasts.
  • End market conditions are not materially different from previous outlooks, supporting the raised revenue and margin assumptions.
  • Improved understanding of the company’s long-term digital strategy, especially the early deployment of Nexa, is influencing optimism.
  • Competitive advantages discussed in recent investor meetings are further driving bullish sentiment on the stock.

What's in the News


  • Revised full-year 2025 guidance: reported sales growth expected between 2% to 5%, organic sales growth from flat to up 3%, and operating margin projected at 17.2% to 17.8%, including tariff impacts.
  • Ryan Lada appointed as Chief Financial Officer, effective July 28, succeeding Shashank Patel. Lada previously served as CFO at The AZEK Company and has extensive financial leadership experience across multiple public companies.

Valuation Changes


Summary of Valuation Changes for Watts Water Technologies

  • The Consensus Analyst Price Target has risen from $249.20 to $272.80.
  • The Consensus Revenue Growth forecasts for Watts Water Technologies has significantly risen from 4.0% per annum to 4.8% per annum.
  • The Net Profit Margin for Watts Water Technologies has risen slightly from 14.60% to 15.03%.

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.