Pentair PLC (PNR) has been rated a "Buy" by Citi, following strong Q3 results where adjusted EPS of $1.09 surpassed expectations of $1.07. The company is trading at $98.32 as of October 22. Citi highlights Pentair's transformation initiatives, which have expanded return on sales by approximately 310 bps y/y in both Q2 and Q3 2024, as key to its earnings resilience. Despite challenges in the pool segment and sluggish residential markets, Pentair raised its 2024 adjusted EPS guidance to $4.27 from $4.25. Citi maintains a target price of $113, based on a 23.5x P/E multiple applied to the 2025 EPS estimate of $4.80. The report notes, "PNR’s ongoing transformation initiatives should allow the company to offset lower sales by continued significant adj. segment margin expansion." Risks include exposure to cyclical markets and competitive pressures in residential and commercial filtration.