Stifel cuts Zurn Water Solutions stock price target on construction outlook

Stifel has reduced its Zurn Water Solutions stock price target to $56, down from $62, while keeping a Buy rating. Despite the lower target, it still suggests potential upside from the current $47.06 price. Notably, 9 analysts have raised their earnings forecasts for the future, and the company has an excellent Piotroski Score of 9, indicating robust financial health.

Zurn anticipates stable demand levels with improved pricing prospects in the second half of 2026 due to persistent inflation. The firm notes that Zurn's ability to pass inflation through to customers through a positive spread has been strong. With a gross profit margin of 49%, Zurn demonstrates pricing power, and its PEG ratio of 0.47 indicates an attractive valuation compared to its growth potential.

The company's strong financials were evident in its Q2 2026 earnings report, surpassing analyst expectations with adjusted earnings of $0.50 per share and revenue of $491 million, well above $483.1 million. Stifel will be particularly interested in learning more about new product releases in 2026 and how the sustainability of growth from these products will impact the company.