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Watts Water Shares Downgraded To Neutral By Seaport, M&A The Next Catalyst

Watts Water Shares Downgraded To Neutral By Seaport, M&A The Next Catalyst
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Seaport Global's Ryan Cassil downgraded Watts Water Technologies Inc (NYSE: WTS) to Neutral, while maintaining a price target of $58.

Cassil did not see anything new in the company, but downgraded Watts due to the price passing the analyst's target of $58.00. The downgrade "has happened without an incremental catalyst from our previous thesis tied to low-single digit organic growth and margin expansion through the company's internal transformation program," said the Seaport analyst.

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Possible M&A

If there were to be a future catalyst for the company, it would be M&A, according to Cassil. "Management commented previously that the pipeline for deals remains full and is centered largely on businesses within the Americas," noted the analyst. Due to Cassil's current valuation, he suggests to "await a better entry point" before buying in to take advantage of possible M&A.

At time of writing, Watts Water Technologies traded at $59.02.

Latest Ratings for WTS

Sep 2016Janney CapitalInitiates Coverage onNeutral
Jun 2016Seaport GlobalDowngradesAccumulateNeutral
May 2016BB&T CapitalUpgradesHoldBuy

View More Analyst Ratings for WTS
View the Latest Analyst Ratings

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