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Ecolab to Gain From Stronger Volumes, Margins, UBS Says
Ecolab (ECL) could see stronger earnings growth as pricing, higher volumes, cost savings, AI and digital tools, and better margins support results over the next several years, UBS said in a note Tuesday.The investment firm said Ecolab's shift toward faster-growing high-tech markets could lift annual volume growth to about 4%, above its older pace of about 1% to 2%.UBS expects adjusted earnings per share to grow at about a 17% annual rate from 2027 to 2029, helped by stronger sales and higher margins, while high-tech sales, including semiconductor water treatment and data center cooling, could grow to 12% to 14% of total sales and support better margins.Ecolab's broader growth areas, including life sciences, pest control, digital services, and high tech, could rise to about 25% of sales, though UBS said it expects margin growth to slow in 2026 because of raw material costs, but said margins could improve again from 2027 and reach about 24% by 2029.UBS upgraded Ecolab to buy from neutral and raised its price target to $325 from $293.Shares of the company were up about 4.6% in Wednesday trading.Price: $265.63, Change: $+11.40, Percent Change: +4.48%
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