Stifel on Wednesday raised its price target for Ecolab Inc. (NYSE:ECL) to $337.00 from $300.00 while reiterating a Buy rating on the shares. The updated target implies roughly a 12% upside from ECL's then-current quote of $300.43, with the stock trading close to its 52-week high of $303.01.
The analyst's revision follows Ecolab's reported expansion in adjusted EBIT margins for the fourth quarter of 2025 and the company's guidance for an additional 100 to 150 basis points of margin improvement in 2026. Stifel highlighted those margin dynamics as the primary driver behind the higher valuation.
In its research note, Stifel laid out an expectation that Ecolab can deliver 12% to 15% earnings-per-share growth for an extended period. The firm also observed that should end-markets outperform the roughly 1% volume growth it anticipates for 2026, Ecolab could both post stronger EPS growth and reach its 2027 target of a 20% EBIT margin earlier than currently modeled.
The new $337 price objective corresponds to a 34x multiple on Stifel's 2027 EPS estimate for Ecolab. That multiple reflects the firm's projection of continued margin expansion and sustained EPS growth over the medium term.
Separately, Ecolab reported record fourth-quarter 2025 results. The company posted adjusted earnings per share of $2.08, slightly above the forecast of $2.07, while quarterly revenue came in at $4.19 billion, in line with market expectations. Management maintained its revenue forecast following the quarter, and the stock registered a modest uptick after the results were released.
These results and Stifel's updated valuation sit amid the company's ongoing financial narrative centered on margin improvement and steady EPS progression. The analyst's note ties the valuation increase directly to measurable margin gains reported in the quarter and the explicit guidance for further margin expansion in the coming year.
Context and implications
- Stifel's target move to $337 from $300 is grounded in recent adjusted EBIT margin expansion and company guidance for 100-150 basis points of additional margin improvement in 2026.
- The analyst projects 12%-15% EPS growth for an extended period and values the company at 34x Stifel's 2027 EPS estimate.
- Ecolab reported record Q4 2025 EPS of $2.08 on $4.19 billion in revenue and maintained its revenue forecast; the stock rose slightly after the announcement.
How this affects markets
- Investors tracking Ecolab's stock now have an updated target implying about 12% upside from the referenced trading level.
- Analyst expectations for sustained EPS growth and margin improvement feed into valuation models and could influence investor sentiment toward companies with similar margin-leverage profiles.