Analyst Note
| Krzysztof Smalec, CFA |We are increasing our fair value estimate for narrow-moat-rated Pentair to $68 from $64 after the water solutions company reported solid second-quarter results and raised its guidance for full-year 2021. Pentair’s second-quarter sales of $941 million and adjusted EPS of $0.84 both surpassed FactSet consensus estimates of $914 million and $0.80. Our fair value adjustment reflects Pentair’s strong performance, an improved near-term outlook, and time value of money.