BMO Capital Maintains Bullish Stance on Ecolab (ECL), Confident in Earnings Growth Target

Representing 2.94% of Bill Gates’s stock portfolio, Ecolab Inc. (NYSE:ECL) is one of his top 15 stock picks.

On October 30, 2025, BMO Capital reiterated its “Outperform” rating on Ecolab Inc. (NYSE:ECL), while reducing its price target from $310 to $307.

The investment firm cited a 7% pullback in Ecolab Inc. (NYSE:ECL) shares over the period from October 27 to 29. The firm believes the decline means the creation of a compelling entry point, particularly as the company looks well-positioned to achieve its 12%-15% EPS growth target for 2025. Furthermore, the stock’s valuation multiple is near decade-long lows in comparison to the S&P 500. This may result in shares rebounding toward their updated target, BMO Capital noted.

Meanwhile, just two days earlier, Ecolab Inc. (NYSE:ECL) reported Q3 2025 results. Thanks to accelerating pricing, modest volume gains, and a 110-basis-point organic operating margin expansion, the quarter marked 13% adjusted EPS growth, taking it to $2.07. The company reported strength across Institutional & Specialty, Pest Elimination, and Life Sciences segments, which offset weaknesses in certain industrial end markets. Accordingly, Ecolab tightened its 2025 adjusted EPS guidance to $7.48-$7.58.

Ecolab Inc. (NYSE:ECL), a global leader in sustainability, delivers water, hygiene, and infection prevention solutions to protect people, food, and vital resources in 170 countries.

While we acknowledge the potential of ECL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.