• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Watts Water Technologies (WTS) After Argus Cuts Its Target Still Looks Undervalued

    Simply Wall St·10/18/2026 13:36:04
    Listen to the news

    Argus Research recently lowered its price target on Watts Water Technologies (WTS) to US$386, following a technical review that still points to a bullish intermediate-term setup for the stock.

    Recent trading has been steady rather than explosive, with Watts Water Technologies posting a 1-day share price return of 0.46% and a 90-day share price return of 4.75% on the way to a year to date share price return of 28.04%. That move sits alongside a 1-year total shareholder return of 30.33% and a 3-year total shareholder return of 111.94%. This points to momentum that has built over a longer horizon, even as the latest adjustment in expectations keeps short term gains more measured.

    Scan beyond Watts Water Technologies and line up other potential momentum stories with the curated 33 high quality undervalued stocks that combine resilient fundamentals with room for sentiment to catch up.

    Given the recent climb in Watts Water Technologies and a trimmed yet higher analyst target, do you lean into the current price or wait for a deeper pullback before valuation really stacks up for you?

    Most Popular Narrative: 12% Undervalued

    Against a last close of $356.70, the most followed narrative anchors Watts Water Technologies at a fair value of $404, with that gap resting on specific growth and margin assumptions rather than vague optimism.

    The accelerating ramp in Watts Water Technologies data center cooling sales, which reached 8% of company revenue in the first half of 2026 as Q1 and Q2 data center revenue more than doubled and more than tripled year on year, along with an increase in the served addressable market estimate to about US$2b, points to an expanding future contribution to revenue and operating income.

    See why 7 investors see Watts Water Technologies as 12% undervalued.

    Result: Fair Value of $404 (UNDERVALUED)

    Still, the story around Watts Water Technologies depends on European activity not weakening further and on the 80/20 product rationalization not cutting too deeply into reported sales.

    Find out about the key risks to this Watts Water Technologies narrative.

    Another View On Watts Water Technologies Valuation

    On earnings multiples, Watts Water Technologies appears less attractively valued. The stock trades on a P/E of 31x, compared with 24.2x for the wider US Machinery group and 30.6x for peers, while the fair ratio is 21.4x. That difference highlights potential de-rating risk if sentiment weakens. Investors may wish to consider how comfortable they are paying a premium for this company’s shares.

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:WTS P/E Ratio as at Oct 2026
    NYSE:WTS P/E Ratio as at Oct 2026

    Next Steps

    If the mixed tone on Watts Water Technologies has you on the fence, consider taking a closer look at both sides of the story for yourself. Start by examining the balance between risks and potential benefits by checking 3 key rewards and 1 important warning sign.

    Looking For More Investment Ideas Beyond Watts Water Technologies?

    Do not stop with Watts Water Technologies. Put a shortlist together using focused stock lists so you are not relying on one promising story alone.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.