JPMorgan downgrades Ecolab on peaking earnings momentum

JPMorgan downgraded Ecolab (ECL) to Neutral from Overweight with a price target of $220, up from $200. The shares are 49% higher over the past year and the company’s consolidated volume performance in 2023 was roughly flat and is likely to be roughly flat to higher in 2024, the analyst tells investors in a research note. The firm believes Ecolab’s earnings momentum is likely to peak in 2024 as the company experiences a combination of product price increases and raw material cost decreases. JPMorgan believes the shares near fair value and thinks Linde (LIN) is probably a better non-cyclical investment alternative because of its lower trading multiples.