Should You Buy Watts Water Technologies Inc (WTS) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
299.310
1 Day change
0.57%
52 Week Range
306.010
Analysis Updated At
2026/01/26
Watts Water Technologies Inc (WTS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst upgrades, and bullish technical indicators support this decision. Despite minor insider selling and potential short-term stock trend risks, the long-term growth potential and positive sentiment outweigh these concerns.
Technical Analysis
The technical indicators for WTS are bullish. The MACD is above 0 and positively contracting, indicating upward momentum. The RSI is neutral at 62.413, and the moving averages (SMA_5 > SMA_20 > SMA_200) confirm a bullish trend. The stock is trading above the pivot point (295.198), with resistance levels at 303.121 and 308.016, suggesting room for further upside.
Options Data
Bearish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
0
Buy
10
Positive Catalysts
KeyBanc upgraded WTS to Overweight with a $340 price target, citing strong pricing tailwinds and growth potential in data centers.
Hedge funds are significantly increasing their positions, with a 252.06% rise in buying activity.
Strong Q3 financial performance with revenue, net income, and EPS growth of 12.53%, 18.96%, and 18.93% YoY, respectively.
Neutral/Negative Catalysts
Insiders are selling shares, with a 2010.01% increase in selling activity over the last month.
Stock trend analysis suggests a 70% chance of a short-term decline (-1.36% in the next day, -3.96% in the next week, and -5.04% in the next month).
Financial Performance
In Q3 2025, Watts Water Technologies reported robust financial growth. Revenue increased by 12.53% YoY to $611.7M, net income rose by 18.96% YoY to $82.2M, and EPS grew by 18.93% YoY to $2.45. Gross margin also improved to 48.78%, up 3.13% YoY, reflecting strong operational efficiency.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analyst sentiment is largely positive. KeyBanc upgraded WTS to Overweight with a $340 price target, citing compelling growth potential. Stifel raised its price target to $320, maintaining a Buy rating. However, RBC Capital and Jefferies remain cautious, citing European headwinds and residential exposure, with price targets of $288 and $300, respectively.
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 USD and a high forecast of 312 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
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 USD and a high forecast of 312 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.
1 Buy
7 Hold
0 Sell
Hold
Current: 297.610
Low
275
Averages
295.83
High
312
Current: 297.610
Low
275
Averages
295.83
High
312
HSBC
NULL -> Buy
initiated
$460
AI Analysis
2026-01-27
New
Reason
HSBC
Price Target
$460
AI Analysis
2026-01-27
New
initiated
NULL -> Buy
Reason
HSBC initiated coverage of Watts Water with a Buy rating and $460 price target. The firm says the company's deal Becton Dickinson deal could unlock value from potential synergies and positively drive the stock. Waters' equipment replacement cycle and larger combined installed base "should aid best-in-industry growth and margin," the analyst tells investors in a research note.
KeyBanc
Jeffrey Hammond
Sector Weight -> Overweight
upgrade
$340
2026-01-21
Reason
KeyBanc
Jeffrey Hammond
Price Target
$340
2026-01-21
upgrade
Sector Weight -> Overweight
Reason
KeyBanc analyst Jeffrey Hammond upgraded Watts Water to Overweight from Sector Weight with a $340 price target. The company's setup in 2026 "is too compelling to ignore," the analyst tells investors in a research note. The firm believes Watts' estimates in 2026 will move higher regardless of end market improvement given its "sizable" pricing tailwinds and "outgrowth" from data centers. KeyBanc says the company's emerging acquisition story is underappreciated.
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