- Watts shares have been weak as water stocks have sold off worse than the larger industrial sector, but fourth quarter earnings and FY'22 guidance were sound.
- Core underlying growth is slowing toward the mid-single-digits, but non-residential construction could pick up some in 2023 and the company is still leveraged to advanced technology sales like leak detection/emergency-shutoff.
- The valuation on Watts shares is more reasonable than it has been, but there's still a risk of further shrinkage in the valuation premium.
For further details see:
As Water Stocks Come Off The Boil, Watts Water Technologies Looking More Reasonably Valued