US Electrical Equipment & Multi-Industry: EE/MI Morning Note – Lowering PNR estimates, Housing Intentions Survey, + Macro

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US Electrical Equipment & Multi-Industry: EE/MI Morning Note – Lowering PNR estimates, Housing Intentions Survey, + Macro

Powered by Lab Global16 JulyResearch2026ab Evidence UBS YES

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note – Lowering PNR estimates,

Housing Intentions Survey, + Macro Industrial, Diversified

Amit Mehrotra

Analyst

amit.mehrotra@ubs.com

Lowering price target and estimates for PNR- We are updating our model and +1-201-352 1410

lowering our price target for Pentair from $115 to $78, following the recent negative

Neal Burk

pre-announcement by the company. We are lowering our 2026 and 2027 EPS estimates

by 12% and 13%, respectively, with the changes mainly being to the Pool segment. Our neal.burk@ubs.com

revised forecasts estimate that Pool would be down high teens organically for the full +1-212-713 4066

year and for Pool segment margin to contract about 250bps year over year, implying a

Pratap Singh

45% decremental margin. The magnitude of the destock headwind was far more than

what was expected. So, we are recalibrating our model ahead of the quarter. We expect pratap-za.singh@ubs.com

to get more commentary when the company reports on July 28th in regards to channel +1-212-821 3112

dynamics and the growth drivers from here. Our new price target is derived by applying

Zachary Walljasper

~15x (~19x before) to 2Q27-1Q28 EPS forecasts. We think a higher multiple than what Associate Analyst

the stock is currently pricing (~12x) is warranted because of the trough growth levels in zachary.walljasper@ubs.com

our view. Secondly, ~15x would still be a discount to the peer average which is closer to +1-212-713 9829

high teens/low 20s NTM P/E and is about 1 standard deviation below the historical

trading average.