Analyst firm Jefferies has raised its price target on Ecolab Inc . (NYSE:ECL) from $310.00 to $315.00 on Tuesday and left the rating at "Buy". The increase follows the announcement of an acquisition. The stock, which is currently trading at $275.23, close to its 52-week high, is showing strong momentum with a year-to-date performance of 17.3%. According to an analysis by InvestingPro the company is in "GOOD" overall financial health.
Jefferies reports that Ecolab will acquire the water business for the electronics industry from unlisted Ovivo for $1.8 billion.
The acquisition will increase Ecolab's sales by approximately $500 million, although the contributions to EBITDA and EBIT were not disclosed in the announcement.
Jefferies noted that this acquisition will expand Ecolab's presence in the electronics business.
The analyst firm expects annual volume growth of 10% in the data center segment, a forecast that is supported by this acquisition.
In other recent news, Ecolab Inc. announced a definitive agreement to acquire the electronics business of Ovivo Inc. for approximately $1.8 billion in cash. This acquisition is expected to strengthen Ecolab's position in water solutions for semiconductor manufacturing. Ovivo Electronics is forecast to generate sales of USD 500 million in 2025. In addition, Ecolab's Board of Directors declared a regular quarterly cash dividend of $0.65 per common share, continuing its 88-year uninterrupted streak of dividend payments.
Ecolab has also appointed Julie P. Whalen, former chief financial officer of Expedia Group, to its board of directors. Whalen will serve on the Audit and Finance Committee. Meanwhile, Mizuho has also raised its price target for Ecolab to $314, citing stable growth prospects. The company reported adjusted earnings per share of $1.89 for the second quarter of 2025, in line with the Bloomberg consensus estimate.