BUZZ-J.P.Morgan upgrades Ecolab to 'overweight', says raw material cost risks overstated

Reuters03-24
BUZZ-J.P.Morgan upgrades Ecolab to 'overweight', says raw material cost risks overstated

** J.P.Morgan upgrades water solutions company Ecolab ECL.N to "overweight" from "neutral"

** Brokerage wants to "Overweight" larger capitalization companies "with good balance sheets as they may outperform in a more difficult operating environment"

** Adds, ECL is taking steps over a multi-year period to manage its business with increased efficiency and at lower cost

** ECL's share price has moved lower in recent weeks "due to perceived risks of earnings growth erosion from higher raw material costs", which the brokerage believes are likely misplaced

** Brokerage says materials companies are positively sensitive to de-escalation in the Mideast because of benefits from less raw material inflation and less diminished rates of economic growth

** 17 out of 27 brokerages rate the stock "buy" or higher and 10 "hold"; median PT is $326 - LSEG data

** As of last close, ECL down 0.5% YTD

(Reporting by Sumit Saha in Bengaluru)

((Sumit.Saha@thomsonreuters.com;))

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