Update shared on06 Sep 2025
Fair value Increased 1.83%Analysts have raised their price target for Watts Water Technologies to $277.80, citing favorable tariff mitigation, stable end market conditions, incremental earnings upside from China tariffs, strategic digital initiatives, and strengthened confidence following executive meetings.
Analyst Commentary
- Bullish analysts are raising price targets based on anticipated tariff mitigation and positive revisions to earnings per share estimates due to actual tariff impacts being less severe than previously feared.
- End market conditions are expected to be stable, supporting the company’s current outlook framework and assumptions on revenue and margin expansion.
- The China tariff situation alone is driving meaningful incremental earnings upside relative to prior quarterly views.
- Early deployment of the Nexa digital platform and a deeper understanding of management's long-term digital strategy are seen as competitive advantages.
- Investor meetings with the executive team have reinforced analysts' confidence in the company’s operational execution and strategic direction.
What's in the News
- Repurchased 18,019 shares for $3.99 million, completing a total buyback of 61,574 shares for $13.02 million under the ongoing repurchase plan.
- Raised full-year 2025 guidance, now expecting reported sales growth of 2% to 5%, organic sales growth of flat to 3%, and operating margin between 17.2% and 17.8%.
- Appointed Ryan Lada as Chief Financial Officer, succeeding Shashank Patel; Lada brings experience from The AZEK Company and multiple senior finance roles in the industry.
Valuation Changes
Summary of Valuation Changes for Watts Water Technologies
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $272.80 to $277.80.
- The Future P/E for Watts Water Technologies remained effectively unchanged, moving only marginally from 28.63x to 29.15x.
- The Discount Rate for Watts Water Technologies remained effectively unchanged, at 7.94%.
Disclaimer
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