Zurn Elkay Water Solutions Needs To Fall More Than This To Warrant An Upgrade
Zurn Elkay Water Solutions delivers robust operational growth, but valuation remains stretched, justifying a continued "Hold" rating. Revenue rose 10.5% to $491 million, and adjusted EBITDA is projected to grow 14.9% year-over-year, excluding tariff refunds. Recent acquisition of Intellihot expands ZWS's addressable market by $1.1 billion, targeting regulatory-driven demand in tankless water heaters.