ZWS - Zurn Water Solutions - Maybe Not A Unicorn But Definitely A Thoroughbred

• Zurn saw some margin pressure in Q4, but still delivered strong double-digit revenue growth on the back of strong institutional end-markets like education and healthcare.
• Acquiring Elkay will diversify Zurn into drinking water, a faster-growing category, and provide some worthwhile synergies.
• Zurn looks set up for a rare and valuable combination - multiple years of above-market growth and above-average margin growth, as well as future M&A optionality.
• Zurn shares look undervalued below the mid-to-high $30's and are worth a look despite weak sentiment on the water space today.

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