Pentair (NYSE:PNR) shares rose more than 2% after JPMorgan upgraded the company to Overweight from Neutral and raised its price target to $113 from $90, citing easing tariff concerns, pricing resilience, and a valuation that remains attractive relative to free cash flow expectations.
The firm noted that the tariff environment has largely stabilized, reducing input cost pressure and potentially phasing out related surcharges. While some of the recent price increases may normalize over time, JPMorgan believes many are likely to stick, particularly through established distribution channels.
Pentair’s second-half volume expectations—projected down more than 6%—are viewed as overly conservative. The bank anticipates that demand will remain steady, with only modest volatility tied to pre-buys, and no major pullback in capital spending from customers.
Sector-wide, JPMorgan sees a re-rating that reflects the broader market’s climb, making valuation less compelling on an absolute basis but still reasonable relative to the S&P 500. Pentair stands out as a company that guided cautiously and has room for margin upside if demand holds and pricing proves durable.