Ecolab (ECL) is well positioned for faster earnings growth as its core business remains strong, its growth businesses expand and AI-related demand supports its Global High-Tech operations, Oppenheimer said in a note Friday.
The investment firm expects Ecolab's core operations to deliver volume and pricing growth that exceeds expense growth, supporting faster adjusted earnings growth over the coming years. It said Global High-Tech, Pest Elimination, Life Sciences and Ecolab Digital should add revenue and improve profitability as they expand.
The Ovivo and CoolIT Systems acquisitions should strengthen Ecolab's position in semiconductor water recycling and data-center cooling, two areas supported by AI investment, the investment firm said.
Oppenheimer maintained its Q2 adjusted earnings estimate at $2.07 per share. It lowered its 2026 and 2027 adjusted EPS estimates to reflect non-cash amortization and financing costs related to the recently completed CoolIT acquisition.
The firm upgraded Ecolab to outperform from perform and set a $320 price target.
Shares of Ecolab were up more than 1% in Friday trading.
Price: $278.67, Change: $+2.96, Percent Change: +1.07%