UBS recently upgraded the stock of Pentair, a leading provider of pool equipment, due to an expected rebound in demand later this year. According to UBS analysts, Pentair shares could rally more than 24% as a result.
The upgrade comes on the heels of news that many states are beginning to reopen their economies and allow for outdoor recreational activities like swimming pools. This is great news for companies like Pentair who provide much-needed supplies, such as pumps and filters necessary for maintaining these pools.
Pentair has already seen an increase in orders from customers looking to open or maintain existing facilities during the pandemic-induced slowdown earlier this year. With more people now able to access public spaces again, demand will likely continue growing throughout 2021 and beyond – providing further upside potential for investors with exposure through stocks, such as Pentairs’.
In addition to its current order backlogs from 2020, UBS expects pentairs’ sales volumes will also be driven by increased consumer spending due to higher disposable incomes resulting from government stimulus packages over recent months – making it one stock worth considering ahead of what looks set up by a strong recovery period going forward into 2021 and beyond.
Read more at CNBC
