ECL Ecolab Inc

Citi analyst Patrick Cunningham lowered the price target on Ecolab Inc. (NYSE: ECL) to $315 from $323, maintaining a Buy rating amidst shifting views on the chemicals sector. Despite this, Ecolab recently expanded its reach in the AI supply chain by acquiring Ovivo’s electronics business, which specializes in ultrapure water technologies for semiconductor manufacturing. This acquisition is expected to significantly boost Ecolab's high-tech growth engine and leadership in critical circular water management solutions for the water-intensive semiconductor industry.

DLA Piper advised Ecolab Inc. on its acquisition of Ovivo’s Electronics business for approximately CAD$2.4 billion. This acquisition will expand Ecolab's presence in the artificial intelligence value chain by combining Ovivo Electronics' ultrapure water technologies with Ecolab's global water, digital, and service capabilities, aiming to provide critical circular water management solutions in the semiconductor industry. The transaction is expected to significantly reduce water use within the water-intensive semiconductor manufacturing process.

Mirova US LLC significantly reduced its stake in Ecolab Inc. (NYSE:ECL) by 11.1% in Q3, selling 227,931 shares, but the company still represents its fourth-largest holding valued at $499.76 million. Senior insiders also sold shares, materially reducing their ownership. Despite insider selling, Ecolab increased its quarterly dividend, reported Q3 results in line with expectations, and provided optimistic Q4 and FY2025 EPS guidance.

Ecolab is transforming from a traditional hygiene leader into a high-growth company, primarily driven by the increasing demand for water solutions in AI infrastructure and data centers. Its Global High-Tech segment saw 25% sales growth, boosted by the Ovivo acquisition and rising need for ultra-pure water in semiconductors and data centers. With operating margins reaching 18.7% and a target of 20% by 2027, Ecolab offers at least 13% upside, making it an attractive buy given its reasonable valuation relative to its growth and quality.

Rollins Inc., the company behind Orkin, has evolved from a traditional pest control provider into a tech-enabled, recurring-revenue powerhouse. The company's success stems from its foundational service model, integrating software and data to manage a vast field workforce, and its focus on essential services like health, safety, and regulatory compliance. This strategy positions Rollins Inc. as a stable, low-volatility investment in a consolidating market, with a strong emphasis on predictable revenue and disciplined expansion.

Rollins Inc., primarily known through its Orkin brand, has transformed pest control into a highly effective, tech-driven recurring revenue service. The company operates a platform of specialized pest and termite protection across residential, commercial, and industrial sectors, leveraging software and data for operational efficiency. Despite its seemingly traditional industry, Rollins Inc. is positioned as a reliable, low-volatility compounder due to its essential service, subscription-like contracts, and increasing digital orchestration.