Pentair Earnings: Solid Margin Improvement Despite Softness in Residential End Markets

Narrow-moat-rated Pentair reported solid third-quarter results, featuring a 16% year-over-year increase in adjusted EPS. Management slightly raised its full-year adjusted EPS guidance from roughly $4.25 to $4.27, which would imply a 14% increase from 2023. We’ve increased up our fair value estimate to $85 from $82, driven by slightly higher midcycle operating margin assumptions as well as time value of money since our last update.