Mizuho downgrades Zurn Elkay Water with thesis played out

Mizuho downgraded Zurn Elkay Water to Neutral from Buy with an unchanged price target of $34. The firm says its favorable thesis has largely played out, and it now sees a more balanced risk/reward. The stock has outperformed over the past month while uncertainty has been growing across core non-residential buildings end markets, the analyst tells investors in a research note. Mizuho believes residential remains soft and it sees less headroom for upward revisions, while noting Zurn Elkay’s valuation has expanded 36% over the last year.