Pentair CFO's Unexpected Departure Adds Near-Term Uncertainty, RBC Says

MT Newswires Live07-15 22:57

Pentair (PNR) chief financial officer Nick Brazis' unexpected departure, just four months after his appointment, adds near-term skepticism on the stock, RBC Capital Markets analysts said in a note emailed Wednesday.

Analysts said that the company's preliminary Q2 results missed consensus estimates in every key metric by a wide margin.

RBC said that there is rising concern that distributors are carrying more lower-cost Chinese pool pumps rather than Pentair's higher-margin product.

Also, some investors believe the company's 80/20 initiative and customer refocusing may have affected certain channel relationships, analysts said.

RBC downgraded the stock's rating to sector perform from outperform and lowered its price target to $74 from $101.

Price: 63.37, Change: -12.31, Percent Change: -16.27

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