Ecolab price target raised to $238 from $213 at RBC Capital

RBC Capital raised the firm’s price target on Ecolab to $238 from $213 and keeps an Outperform rating on the shares ahead of its Q4 results. The company expects volume growth of 1% overall in Q4 as comps are about 5pts easier, the analyst tells investors in a research note. RBC adds that Ecolab’s operating margins should reach about 15% in FY24, the highest since FY19, driven predominantly by lower DPC, which should also help gross margins to continue their upward trajectory towards pre-COVID levels.