UPDATE: Oppenheimer Raises PT on Pentair Following Management Meetings

In a report published Wednesday, Oppenheimer analyst Christopher Glynn reiterated a Perform rating on Pentair PNR, and raised the price target from $57.00 to $65.00.

In the report, Oppenheimer noted, “We met with management and discussed synergy realization patterns and projections, as well as portfolio composition and positioning. Legacy PNR consisted of four global business units (GBUs), with G&A expense about 4% of sales, while the Flow Control acquisition's three GBUs run at 7-8% levels. PNR notes high confidence in rationalizing ~4 ppts of G&A across the Flow GBUs, with no adverse impact on customers, given that the businesses never realized the benefits of scale from the aggressive M&A-driven consolidation during a prior era. The deal crystallized PNR's long-standing strategic interest in a robust exposure to the global energy sector, with the integration process targeted to establish a foundation for systematic long-term M&A.”

Pentair closed on Tuesday at $59.57.