UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Ecolab on In-Line Q4 Earnings

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Ecolab

, and raised its price target from $77.00 to $88.00. Deutsche Bank noted, “Light Q1 guidance more than offset by strong results at Nalco and Europe. Buy. Ecolab shares rose 4% following an in-line Q4 earnings release as below consensus Q1 '13 guidance was more than offset by strong Q4 results at Nalco (EBIT +47%) and Ecolab's European cleaning business (EBIT +48%), a reasonable explanation for the Q1 shortfall (tough Energy comp, pension, sale of vehicle care) and reaffirmed '13 EPS guidance of +13-17% ex Champion and +16-20% with Champion. With the European restructuring gaining traction (margins +110 bps in '12; another 100bps in ‘13E), the $2.2B Champion acquisition (on track to close by quarter end) likely to accelerate upstream growth in Energy (shale, oil sands) and valuation a fair 21.5x ‘13E EPS, Buy.” Ecolab closed on Tuesday at $75.84.