First Read Pentair Plc: 2Q results are in line with pre-announcement. Announces acquisition of Taco Group.

研报英文原文证据摘录

First Read Pentair Plc: 2Q results are in line with pre-announcement. Announces acquisition of Taco Group.

Forecast returns

Forecast price appreciation 23.5%

Forecast dividend yield 1.7%

Forecast stock return 25.2%

Market return assumption 9.3%

Forecast excess return 15.8%

Company Description

Pentair is an equipment manufacturer and service provider focused on water filtration, flow

control, and other water management solutions for residential, commercial, and industrial

end markets. The business operates under three reporting segments: Pool, Water Solutions,

and Industrial & Flow Technologies, with 135 locations in 24 countries and about 11,000

employees. The company's portfolio of products and solutions is meant to enable people,

business, and industry to access clean, safe water, reduce water consumption, and recover

and reuse water. In 2022, sales were $4.2bn.

Valuation Method and Risk Statement

Valuation: Our Price Target is based on relative P/E methodology.

Risk Statement: The Electrical Equipment and Multi Industry sector faces a broad range of

risks. It is cyclical in nature with exposure to the underlying cycles inherent in everything from

aviation, auto, trucking and trains to construction and consumer electronics to mining,

power, oil and gas and more depending on the specific stock. EEMI companies are subject to

risks associated with unexpected changes in the underlying global macro environment,

currency and interest rate movements, commodity price inflation as well as company specific

execution, M&A, integration, and changes in the competitive or regulatory environment.

These changes can be in the form of product technology (e.g., solar, energy storage, electric

vehicles), ecommerce and other digital disruption and/or channel disintermediation. Capacity