Watts Water Technologies

WTS · NYSE

$358.10+$1.10 (+0.31%)TodayMarket closed · Oct 20, 7:46 PM ET

Prev close $357.00

WTS analyst rating

BuyConsensus of 8 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy4
Hold4
Underperform0
Sell0

12-month price target · 9 analysts

Average $413.16 (+15.4% upside)

Low: $363.60
Now: $358.10
High: $469.35

Upgrades and downgrades

The latest rating actions, newest first

WTS analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
RBC Capital	Oct 14, 2026	Maintains	Sector Perform	$417.00	43%
RBC Capital	Aug 7, 2026	Maintains	Sector Perform	$350.00 → $417.00	43%
Barclays	Aug 7, 2026	Maintains	Overweight	$414.00 → $425.00	29%
Keybanc	Aug 6, 2026	Maintains	Overweight	$380.00 → $400.00	21%
Stifel	Jul 20, 2026	Maintains	Buy	$379.00 → $403.00	61%
RBC Capital	Jul 16, 2026	Maintains	Sector Perform	$323.00 → $350.00	43%
Keybanc	Jul 13, 2026	Maintains	Overweight	$360.00 → $380.00	66%
TD Cowen	Jul 2, 2026	Maintains	Hold	$275.00 → $320.00	88%
Barclays	Jun 30, 2026	Upgrade	Equal-Weight → Overweight	$317.00 → $414.00	29%
Barclays	May 11, 2026	Maintains	Equal-Weight	$323.00 → $317.00	29%

The case for and against

Updated Oct 18, 2026

Bull case

Watts Water Technologies is benefiting from a powerful mix of resilient replacement demand, strong pricing, and accelerating exposure to higher-growth end markets, especially datacenters where sales more than tripled Y/Y and the served addressable market was doubled to about $2 billion. Its 2Q26 results reinforced the thesis, with EPS of $3.66, organic revenue up 12.2%, and free cash flow conversion of 77%, while all three regions outperformed and Europe’s +9% organic growth signaled an important stabilization after roughly two years of weakness. Management’s higher full-year 2026 guidance for organic growth and adjusted operating margin, combined with a net cash balance sheet and ~15% FCF margin, supports further earnings power and strategic flexibility.

Bear case

Watts Water Technologies is viewed negatively because its revenue base remains exposed to softer residential and nonresidential repair-and-replacement activity, with Europe and residential markets still presenting macro uncertainty and Europe contributing about 30% of sales. Although management guided adjusted EBITDA margin to 22.2%-22.8% and operating margin to 19.8%-20.4%, those gains can be offset by roughly 50 bps of M&A dilution, FX headwinds in 3Q26, and the risk of weaker growth in replacement-driven demand. The company also faces pressure from persistent nonresidential construction weakness, potential European recession, raw material inflation, and governance concentration, where the Horne family’s ~68% voting power may limit minority influence.

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