Pentair PLC

PNR: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$96.00	Ttwsbp	Whkqfnkk

Pentair Earnings: Transformation Initiatives Continue to Drive Margin Expansion

Krzysztof Smalec

Oct 25, 2023

We are maintaining our $70 fair value estimate for narrow-moat-rated Pentair after the company reported third-quarter results, as our slightly more muted near-term revenue growth projections were offset by the time value of money. Despite a 7% year-over-year core sales decline in the third quarter, we were encouraged by Pentair’s 140-basis-point year-over-year adjusted operating margin expansion, from 19.6% to 21%, driven by pricing, productivity, and margin accretion from the Manitowoc acquisition.

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