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Jefferies upgraded Middleby (MIDD) and Pentair (PNR) to Buy, raising price targets to $175 and $135 respectively, citing potential for double-digit earnings growth.
Analysis suggests Pentair (PNR) may be 13.8% undervalued with a fair value of $121.89, despite its P/E ratio of 26.3x indicating it is fully priced compared to industry peers.
Pentair has announced a significant capital return program, featuring an 8% increase in its quarterly dividend and a new $1 billion share repurchase authorization. This move signals management confidence in the company's financial stability and future cash flows.
Barclays downgraded Pentair (PNR) to Equal Weight from Overweight, cutting its price target to $115 from $127 due to concerns over slowing margin improvement. The move signals heightened analyst scrutiny in a market sensitive to corporate performance outlooks.