Analyst Note
| Seth Goldstein, CFA |Wide-moat Ecolab's shares have fallen over 30% from their 52-week high as the company's financials have been impacted by cost inflation and continued lower volumes due to the COVID-19 pandemic affecting dining and travel. However, we view these issues as fleeting and expect profits to recover and improve sequentially throughout 2022 and into 2023. At current prices, we view the stock as undervalued, trading in 4-star territory relative to our $215 fair value estimate, creating an opportunity for long-term investors to pick up shares of one of the highest quality specialty chemicals companies in our coverage.