RBC Raises Zurn Elkay Price Target to $55 Amid Strong Q4 Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Source: Yahoo Finance
Zurn Elkay Water Solutions Corp's stock rose by 3.33% as it reached a 52-week high.
RBC Capital raised its price target for Zurn Elkay from $49 to $55, reflecting confidence in the company's strong Q4 performance, which included an adjusted EBITDA approximately 2% above consensus and a robust organic sales growth of 10%. The company also provided a conservative guidance for 2026, suggesting mid-single-digit sales growth, but anticipates core sales growth of 7%-8% in Q1, indicating ongoing market demand and growth potential.
This positive outlook from RBC, combined with the company's solid financial results, reinforces investor confidence in Zurn Elkay's long-term growth trajectory.
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Analyst Views on ZWS
Wall Street analysts forecast ZWS stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 49.010
Low
50.00
Averages
55.83
High
59.00
Current: 49.010
Low
50.00
Averages
55.83
High
59.00
About ZWS
Zurn Elkay Water Solutions Corporation specializes in water solutions for health, hydration, human safety and the environment. Its product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products and filtered drinking water products for public and private spaces. Its drinking water product line includes a collection of filtered drinking water delivery products. Its water safety and control products encompass a range of valve and water distribution control products. Its flow systems products are commonly installed within a building or on a site to manage storm water and wastewater. Its hygienic and environmental products include primarily sensor-operated flush valves, heavy-duty commercial faucets, and flush valves and faucets. Its products are marketed and sold under various brand names, including Zurn, Elkay, Wilkins, Green Turtle, World Dryer, StainlessDrains.com, JUST, Hadrian, Wade, and Halsey Taylor.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Zurn Elkay Named One of America's High-Growth Companies 2026
- High-Growth Company Honor: Zurn Elkay Water Solutions has been named for the first time to Business Insider and Plant-A Insights Group's list of America's High-Growth Companies 2026, being one of only 50 manufacturers among 500 companies, highlighting its leadership in the water management sector.
- Outstanding Financial Performance: The company achieved over $100 million in revenue and profitability in fiscal year 2025, meeting the selection criteria and demonstrating its strong financial health and sustained growth potential, further solidifying its market position.
- Commitment to Sustainability: Innovations such as drinking water filtration and backflow preventers reflect Zurn Elkay's unwavering commitment to sustainability, addressing escalating water conservation and contamination issues while creating long-term value for customers.
- Multiple Honors Recognition: The company has also been recognized by TIME and Newsweek as one of America's Growth Leaders and one of the World's Best Companies for Sustainable Growth, enhancing its brand image and market competitiveness, attracting more investor attention.
See More
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- Valuation Grading System: Seeking Alpha's valuation grade assesses stocks using various metrics such as P/E, PEG, EV/Sales, and EV/EBITDA, combining current and forward estimates to help investors gauge relative stock value, thereby influencing investment decisions.
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Zurn Elkay Appoints New COO and CFO
- Executive Appointments: Zurn Elkay Water Solutions has promoted Dave Pauli to Chief Operating Officer and Dan Klun to Chief Financial Officer, with Klun having served as Vice President of Finance since 2017, indicating the company's commitment to leadership stability and continuity.
- Financial Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, demonstrating strong market performance and future growth potential.
- Dividend Declaration: Zurn Elkay has declared a dividend of $0.11 per share, reflecting its robust financial health and commitment to shareholder returns, which is likely to enhance investor confidence.
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See More
Zurn Elkay Donates $370,000 Water Filtration Units to UCISD
- Donation Overview: Zurn Elkay has donated $370,000 worth of 36 Elkay Pro FiltrationTM filtered bottle filling stations and 73 filtration conversion kits to UCISD, aimed at providing safer drinking water for 4,000 students and staff.
- Certification Standards: The donated Elkay filters are certified to NSF/ANSI 42, 53, and 401 standards, effectively reducing lead, microplastics, and other harmful contaminants, ensuring safe drinking water for students and meeting health standards.
- Community Impact: This donation will replace unfiltered drinking fountains in UCISD schools, with an expected installation of one filtered bottle filling station for every 100 students, significantly enhancing the quality of drinking water and health levels among students.
- Long-term Strategic Significance: Zurn Elkay's Fountains for Youth initiative not only addresses drinking water safety but also demonstrates the company's commitment to community responsibility by providing sustainable water management solutions, supporting the healthy development of the Uvalde area.
See More
Zurn Elkay Declares $0.11 Quarterly Dividend in Line with Previous
- Quarterly Dividend Declaration: Zurn Elkay Water Solutions has declared a quarterly dividend of $0.11 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy.
- Optimistic Earnings Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, indicating strong performance and growth potential in the market.
- Financial Performance Beats Expectations: Zurn Elkay reported a non-GAAP EPS of $0.41, beating estimates by $0.05, with revenue of $433 million exceeding expectations by $14.07 million, showcasing the company's operational efficiency and demand strength.
- Dividend Payment Schedule: The dividend is payable on June 5, with a record date of May 20 and an ex-dividend date also on May 20, ensuring timely returns for shareholders and bolstering investor confidence.
See More
Major Rating Updates on Wall Street
- Netflix Advertising Opportunity: Loop reiterates Netflix as a buy, noting that the advertising business contributed about 240bps of growth last year and is expected to grow significantly, highlighting the company's potential in the advertising market.
- Nvidia Earnings Upgrade: CLSA raises Nvidia's price target from $300 to $360, with earnings estimates for FY27-29 increased by 21%-53%, reflecting growing confidence in a longer upcycle for the computing industry.
- Block Rating Upgrade: Piper Sandler upgrades Block from underweight to overweight with a $100 price target, citing margin upside, which indicates a positive outlook for the company's future growth.
- Comcast Value Unlocking: Deutsche Bank upgrades Comcast from hold to buy, stating that the recent spin-off will unlock value, demonstrating positive changes in the company's capital structure.
See More
Zurn Elkay Named One of America's High-Growth Companies 2026
- High-Growth Company Honor: Zurn Elkay Water Solutions has been named for the first time to Business Insider and Plant-A Insights Group's list of America's High-Growth Companies 2026, being one of only 50 manufacturers among 500 companies, highlighting its leadership in the water management sector.
- Outstanding Financial Performance: The company achieved over $100 million in revenue and profitability in fiscal year 2025, meeting the selection criteria and demonstrating its strong financial health and sustained growth potential, further solidifying its market position.
- Commitment to Sustainability: Innovations such as drinking water filtration and backflow preventers reflect Zurn Elkay's unwavering commitment to sustainability, addressing escalating water conservation and contamination issues while creating long-term value for customers.
- Multiple Honors Recognition: The company has also been recognized by TIME and Newsweek as one of America's Growth Leaders and one of the World's Best Companies for Sustainable Growth, enhancing its brand image and market competitiveness, attracting more investor attention.
See More
Valuation Analysis of U.S. Industrial Stocks
- High Valuation Screening: Among U.S. industrial stocks with market caps between $2B and $10B, Helios Technologies (HLIO), Primoris Services (PRIM), and VSE (VSEC) are identified as the most expensive relative to their peers, indicating high market expectations that could impact future investment attractiveness.
- Valuation Grading System: Seeking Alpha's valuation grade assesses stocks using various metrics such as P/E, PEG, EV/Sales, and EV/EBITDA, combining current and forward estimates to help investors gauge relative stock value, thereby influencing investment decisions.
- Most Expensive Stocks List: Companies like UniFirst (UNF), Zurn Elkay Water Solutions (ZWS), and Helios Technologies (HLIO) are listed as the most expensive stocks, receiving D- and F valuation grades, suggesting potential bubble risks in their market pricing that investors should approach with caution.
- Market Dynamics Impact: In the market, while Donaldson cuts guidance, Atmus Filtration Technologies (ATMU) is recommended as a buy, reflecting differing market expectations for various companies, which may lead investors to focus more on individual company fundamentals.
See More
Zurn Elkay Appoints New COO and CFO
- Executive Appointments: Zurn Elkay Water Solutions has promoted Dave Pauli to Chief Operating Officer and Dan Klun to Chief Financial Officer, with Klun having served as Vice President of Finance since 2017, indicating the company's commitment to leadership stability and continuity.
- Financial Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, demonstrating strong market performance and future growth potential.
- Dividend Declaration: Zurn Elkay has declared a dividend of $0.11 per share, reflecting its robust financial health and commitment to shareholder returns, which is likely to enhance investor confidence.
- Performance Highlights: While Zurn Elkay's fundamentals are strong, the stock is currently running hot, which may prompt the market to reassess its valuation, potentially impacting investor decisions.
See More
Zurn Elkay Donates $370,000 Water Filtration Units to UCISD
- Donation Overview: Zurn Elkay has donated $370,000 worth of 36 Elkay Pro FiltrationTM filtered bottle filling stations and 73 filtration conversion kits to UCISD, aimed at providing safer drinking water for 4,000 students and staff.
- Certification Standards: The donated Elkay filters are certified to NSF/ANSI 42, 53, and 401 standards, effectively reducing lead, microplastics, and other harmful contaminants, ensuring safe drinking water for students and meeting health standards.
- Community Impact: This donation will replace unfiltered drinking fountains in UCISD schools, with an expected installation of one filtered bottle filling station for every 100 students, significantly enhancing the quality of drinking water and health levels among students.
- Long-term Strategic Significance: Zurn Elkay's Fountains for Youth initiative not only addresses drinking water safety but also demonstrates the company's commitment to community responsibility by providing sustainable water management solutions, supporting the healthy development of the Uvalde area.
See More
Zurn Elkay Declares $0.11 Quarterly Dividend in Line with Previous
- Quarterly Dividend Declaration: Zurn Elkay Water Solutions has declared a quarterly dividend of $0.11 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy.
- Optimistic Earnings Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, indicating strong performance and growth potential in the market.
- Financial Performance Beats Expectations: Zurn Elkay reported a non-GAAP EPS of $0.41, beating estimates by $0.05, with revenue of $433 million exceeding expectations by $14.07 million, showcasing the company's operational efficiency and demand strength.
- Dividend Payment Schedule: The dividend is payable on June 5, with a record date of May 20 and an ex-dividend date also on May 20, ensuring timely returns for shareholders and bolstering investor confidence.
See More
