Is Watts Water's 39% Increase in 2025 Already Reflected in Its Growth Narrative?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 21 2025
0mins
Source: Yahoo Finance
Stock Performance: Watts Water Technologies has seen significant stock gains, with a 39.5% increase year-to-date and a 140.5% rise over the past five years, driven by trends in water infrastructure and sustainability.
Valuation Insights: The company scores 2/6 on valuation checks, indicating that much of the positive news may already be priced in, with a current share price slightly undervalued based on a Discounted Cash Flow model.
PE Ratio Analysis: Watts trades at a PE ratio of 28.7, higher than the industry average, suggesting it may be overvalued compared to its tailored Fair Ratio of 22.7, indicating a premium but not excessively so.
Narrative Approach: Investors can create personalized Narratives to assess the company's future value, allowing for diverse perspectives on its worth, with estimates ranging from $250 to $320 per share.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WTS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WTS
Wall Street analysts forecast WTS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WTS is 295.83 USD with a low forecast of 275.00 USD and a high forecast of 312.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
1 Buy
7 Hold
0 Sell
Hold
Current: 297.610
Low
275.00
Averages
295.83
High
312.00
Current: 297.610
Low
275.00
Averages
295.83
High
312.00
About WTS
Watts Water Technologies, Inc. is a supplier of differentiated solutions, systems and products that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets. The Company's products and solutions include Residential & commercial flow control and protection products that include backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and others; Heating, ventilation and air conditioning (HVAC) & gas includes commercial high-efficiency boilers, water heaters and custom heat and hot water solutions, hydronic and electric heating systems, hydronic pump groups, and flexible stainless-steel connectors; Drainage & water re-use includes drainage products and engineered rainwater harvesting solutions; and Water quality products include point-of-use and point-of-entry water filtration, monitoring, conditioning and scale prevention systems.
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.
Watts Water Technologies Upgraded to Overweight by KeyBanc with $340 Price Target
- Stock Price Surge: Watts Water Technologies saw a 4.3% increase in stock price on Wednesday, reaching an all-time high of $304.42, reflecting strong market confidence in its future growth potential.
- Upgrade Impact: KeyBanc upgraded Watts Water's rating from Sector Weight to Overweight with a price target of $340, viewing the company's 2026 outlook as highly compelling, particularly given the recent muted stock reaction to upward revisions.
- M&A Activity Resurgence: Since Q2 2023, Watts Water has completed approximately $695 million in M&A deals, and despite market uncertainties, analysts believe the company has ample room to leverage its pristine balance sheet to continue M&A activity into 2026.
- Earnings Growth Potential: Analysts noted that Watts Water has a clear path to earnings upside, with organic and inorganic factors expected to drive earnings growth beyond historical trends, justifying a valuation ahead of historical ranges.
Continue Reading
Wall Street Analysts Upgrade Ratings and Price Targets for Multiple Companies
- Watts Water Upgrade: Keybanc analyst Jeffrey Hammond upgraded Watts Water Technologies Inc (NYSE:WTS) from Sector Weight to Overweight with a price target of $340, reflecting confidence in its growth potential, closing at $289.31 on Tuesday.
- Biohaven Price Target Raised: RBC Capital analyst Leonid Timashev upgraded Biohaven Ltd (NYSE:BHVN) from Sector Perform to Outperform, raising the price target from $9 to $22, indicating optimism about its product prospects, with shares closing at $12.68 on Tuesday.
- Ulta Beauty Rating Upgrade: Raymond James analyst Olivia Tong upgraded Ulta Beauty Inc (NASDAQ:ULTA) from Outperform to Strong Buy, increasing the price target from $605 to $790, showcasing strong confidence in its market performance, with shares closing at $675.62 on Tuesday.
- Albemarle Price Target Increase: Truist Securities analyst Peter Osterland upgraded Albemarle Corp (NYSE:ALB) from Hold to Buy, boosting the price target from $125 to $205, signaling positive expectations for its future performance, with shares closing at $172.54 on Tuesday.
Continue Reading