Ecolab upgraded to Neutral from Underperform at BofA

BofA upgraded Ecolab to Neutral from Underperform with a price target of $216, up from $185. With water demand up 40% over the past 40 years and estimated to go up another 25% by 2050, and supply more than halved since 1970, the global water scarcity issue is increasingly severe, the analyst tells investors in a research note. The firm expects Ecolab’s water business to post steady earnings growth, saying there is significant demand from companies striving to reduce water usage. BofA also sees increasing regulatory and legal scrutiny on contaminants discharged in wastewater as a positive for Ecolab as it will require more treatment and monitoring.