Pentair's (PNR) pool business is positioned to return to growth after inventory reductions in its distribution channel were completed, RBC Capital Markets said Tuesday in a report.
The company reaffirmed its expectation for about $1.45 billion in pool-segment sales in 2027, a level that assumes shipments to distributors merely keep pace with end-market demand and does not rely on a recovery in the broader pool market, the report said.
RBC expects Pentair to continue rebuilding relationships with smaller independent dealers that were disrupted by a previous distribution strategy change ahead of the 2027 pool season.
Pentair's pool business remains sound, though investors will likely want evidence of sustained sales growth before becoming more confident in the recovery, particularly as residential demand continues to face pressure from affordability concerns and elevated mortgage rates, the report said.
RBC also cited growth in Pentair's commercial water and infrastructure-related businesses as signs of strength outside the pool segment.
RBC raised its price target to on Pentair stock $69 from $61 and maintained its sector- perform rating.
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