Ecolab upgraded to Outperform at RBC on gross margin expansion, share gains

As previously reported, RBC Capital analyst Ashish Sabadra upgraded Ecolab to Outperform from Sector Perform with a price target of $185, up from $155, noting that fixed currency operating income growth accelerated to 14% in Q4 and stating that the firm expects further improvement going forward. Gross margin expansion should be driven by pricing-delivered cost inflation net benefit, productivity gains and restructuring, while Ecolab’s leadership in product chemistry and technology innovation should drive share gains, the firm argues. Water and Pest Elimination "continue to be the crown jewel," while an inflection in Healthcare & Life Science along with sustained pricing momentum should drive "robust" revenue growth, the firm added.