Mueller Water Products Outlook Supported by Municipal Repair Demand, Pricing Power, Oppenheimer Says

MT Newswires Live10-15

Mueller Water Products (MWA) should benefit from steady municipal repair and replacement spending and its established pricing power, while headwinds from hydrant backlogs and soft home construction appear manageable, Oppenheimer said in a note emailed Wednesday.

Oppenheimer slightly lowered its earnings before interest, taxes, depreciation, and amortization estimates for fiscal 2026 and fiscal 2027 to $369 million and $387 million from $370 million and $397 million, respectively.

Municipal repair and replacement work drives about 60% of revenue, while specialty valves are the company's fastest-growing business on demand from data centers, the note added.

Mueller had about $500 million of cash and no debt maturities until 2029, giving it room for acquisitions and share repurchases, according to the note.

Oppenheimer kept the company's outperform rating and cut its price target to $30 from $32.

Price: 21.46, Change: -0.27, Percent Change: -1.24

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