Ecolab (ECL) to Benefit From Favorable Macroeconomic Backdrop

Ecolab Inc (NYSE:ECL) is one of the best Materials stocks to invest in according to Hedge Funds.

On January 8, Bank of America Securities analyst Matthew DeYoe reaffirmed his positive outlook on Ecolab Inc (NYSE:ECL). The analyst assigned a Buy rating to the stock and raised his price target from $312 to $314. DeYoe’s forecasts lead to an upside of above 15% for investors.

Despite expressing concerns regarding oversupply of commodities along with mixed sentiment towards agriculture, DeYoe sees some macroeconomic support during 2026. This includes the possibility of further rate curbs by the Fed and a positive shift in PMI figures. Another factor highlighted to have a favorable impact is the forecasted capacity rationalization in China.

On January 7, UBS analyst Joshua Spector also maintained his Neutral rating on Ecolab Inc (NYSE:ECL). In the process, he raised his price target estimate from $291 to $295, yielding an upside of more than 8% at the prevailing level.

Ecolab Inc (NYSE:ECL) delivers sustainable solutions for water, hygiene, and infection prevention. The company has 4 reporting segments, i.e., Global Industrial, Global Institutional & Specialty, Global Healthcare & Life Sciences, and Global Pest Elimination. As of 2025, it also delivers 3D TRASAR technology for real-time monitoring of water process management.

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. This article is originally published at Insider Monkey.