Pentair Faces Challenges Despite Recent Growth
Market Overview and Stock Performance
London, U.K.-based Pentair plc (PNR) is a water treatment company that offers a variety of water solutions through its Flow, Water Solutions, and Pool segments. With a market cap of nearly $16 billion, Pentair aims to provide smart and sustainable water solutions, ensuring access to clean water while helping customers reduce consumption and promote water recycling.
Performance Trends: A Closer Look
Over the last year, Pentair’s performance has been strong, significantly outpacing the broader market. However, recent trends indicate a downturn, as the stock has underperformed in 2025. PNR shares increased by 29% over the past 52 weeks, yet experienced a decline of 3.9% year-to-date, while the S&P 500 Index ($SPX) has risen by 22.3% over the same period, with a modest 4% increase in 2025.
When comparing PNR to the Invesco Global Water ETF (PIO), PNR has outperformed with its 29% gain over the past year, but it fell short this year as PIO surged by 5.6% in 2025.
Financial Results and Market Reactions
Pentair released its Q4 results on February 4, which led to a surprising drop of 4.3% in stock prices. Despite reporting a slight decline in net sales of 1.2% year-over-year, bringing the total to $972.9 million, the company managed to exceed Wall Street’s expectations for revenue. Furthermore, adjusted earnings of $1.08 per share surpassed analysts’ estimates by 5.9%.
However, investor confidence was shaken due to the company’s fiscal 2025 topline growth guidance, which is estimated between 0% and 2%, along with an adjusted EPS growth forecast of 7% to 11%. These projections disappointed the market.
Analysts predict a year-over-year EPS growth of 10.2% for the fiscal year ending December, with an estimated EPS of $4.77. Pentair also boasts a solid track record, exceeding analysts’ earnings estimates in each of the last four quarters.
Analyst Ratings and Price Targets
A total of 19 analysts are covering PNR stock, reflecting a consensus rating of “Moderate Buy.” This includes 11 “Strong Buy” ratings, one “Moderate Buy,” and seven “Hold” ratings. This outlook is an improvement from a month ago when only 10 analysts issued “Strong Buy” recommendations.
On February 5, Baird analyst Michael Halloran maintained a “Neutral” rating on PNR while increasing the price target to $114. The average price target of $114.33 signifies an 18.2% premium compared to current levels, while the highest target of $125 suggests a potential upside of 29.2%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
