Mueller Water upgraded to Outperform at Oppenheimer on turnaround potential

As previously reported, Oppenheimer analyst Bryan Blair upgraded Mueller Water to Outperform from Perform with a $19 price target. The firm says it has been warming up to Mueller Water over recent months. Mueller is nearing the end of a multi-year manufacturing transformation and will soon lap peak inefficiencies related to outsourcing and duplicative operating costs. The benefits of modernization investments should also begin to accrue and $25M in gross SG&A savings are anticipated during FY24. These figures imply substantial FY24-26 upside to Mueller Water’s run-rate $202M EBITDA generation, Oppenheimer adds.