Watts Water (WTS) Carrying a Favorable Sentiment After Becton Dickinson Deal

Watts Water Technologies (NYSE:WTS) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds.

On January 27, HSBC analyst Sidharth Sahoo initiated coverage of Watts Water (NYSE: WTS), assigning a Buy rating and a $460 price target. This results in a potential upside of nearly 51% from the prevailing level.

The analyst anticipates potential synergies from the company’s deal with Becton Dickinson, which bodes well for the stock. With a larger combined installed base and Watts Water’s own equipment replacement cycle, Sahoo expects the business to achieve top-tier growth and margins.

On January 8, Joseph Giordano of TD Cowen maintained a Hold rating on Watts Water (NYSE:WTS) and raised his price target from $250 to $275. The analyst attributed his upward revision of the target price to the company’s strong pricing despite challenging market dynamics. This has yielded impressive gross margins of nearly 49%. Giordano also acknowledged the company’s effective capital deployment while staying almost debt-free with a 0.02 debt-to-total capital ratio.

Watts Water Technologies (NYSE:WTS) specializes in systems such as valves, drains, and water quality products that conserve the flow of fluids and energy through buildings. Their products have various applications across commercial, industrial, and residential markets. Some of these include plumbing, heating, municipal, water safety, and conservation.

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Disclosure: None. This article is originally published at Insider Monkey.