Valued at a market cap of $16.1 billion, Pentair plc (PNR) is a leading global provider of water treatment and sustainable water solutions. Based in London, the United Kingdom, the company designs and manufactures products that help manage and improve the quality, movement, and use of water in residential, commercial, industrial, and infrastructure applications.

This water treatment company has outpaced the broader market over the past 52 weeks. Shares of PNR have surged 15% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.5%. However, on a YTD basis, the stock is down 2.8%, lagging behind SPX’s slight uptick. 

Zooming in further, PNR has also outperformed the Invesco Global Water ETF’s (PIO) marginal downtick over the past 52 weeks. However, it has lagged behind the ETF’s 11% return on a YTD basis. 

On Apr. 22, shares of PNR skyrocketed 9.2% after its Q1 earnings release. Although its revenue declined slightly year-over-year to $1 billion primarily due to lower flow and water solutions sales, the company delivered strong profitability. Its adjusted EPS rose 18.1% from the prior-year quarter to $1.11, supported by ongoing transformation initiatives and 80/20 operational strategies. During the quarter, Pentair also began implementing price increases to help offset the effects of newly enacted tariffs. Looking ahead, the company reaffirmed its fiscal 2025 adjusted EPS guidance of $4.65 to $4.80, representing growth of approximately 7% to 11% over 2024. It also maintained its revenue outlook, expecting flat to roughly 2% growth. This tariff preparedness, robust earnings growth, and positive outlook might have bolstered investor confidence. 

For the current fiscal year, ending in December, analysts expect PNR’s EPS to grow 9.7% year over year to $4.75. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 12 “Strong Buy,” one “Moderate Buy,” and six “Hold” ratings. 

This configuration is slightly more bullish than two months ago, with 11 analysts suggesting a “Strong Buy” rating. 

On Apr. 23, RBC Capital maintained an “Outperform” rating on PNR and raised its price target to $101, which indicates a 3.3% potential upside from the current levels. 

The mean price target of $101.61 represents a 3.9% premium from Pentair’s current price levels, while the Street-high price target of $115 suggests an upside potential of 17.6%.