Benzinga | Aug 26, 2021 05:10PM EDT

Pentair Shares Slip After Double Downgrade From JP Morgan To Underweight

* JP Morgan analyst Stephen Tusa double downgraded Pentair PLC (NYSE:PNR) to Underweight from Overweight with a price target of $65 (implying a downside of 15.42%), down from $75.

* Tusa says the stock's valuation now more than discounts most of the upside from a better than expected outcome on earnings for the past two years, mainly on the back of Covid benefits in Aquatics.

* The analyst warns of increased risks of downside to consensus forecasts on normalization in Aquatics. He mentions that at around 60% of EBITDA now, the unit has "likely seen its best days at what we see as an unsustainable peak,"

* After the Q2 results, few analyst firms maintained their ratings and increased the price target on Pentair: Rosenblatt maintained buy, raised price target to $95 from $87, Oppenheimer maintained outperform, raised price target to $80 from $75, and Morgan Stanley maintained underweight, raised price target to $64 from $63.

* Price Action: PNR shares closed lower by 2.64% at $76.97 on Thursday.