Wells Fargo Sees Ecolab Gaining From AI Build-Out

According to CNBC, Wells Fargo upgraded Ecolab to overweight from equal weight and raised its price target to $380 from $315, implying about 25% upside from Thursday’s close. Analyst Jason Haas said the company’s July acquisition of CoolIT Systems for nearly $5 billion expanded its opportunity to provide cooling services to data centers, including new facilities and conversions to direct-to-chip cooling. Haas said less than 20% of the direct-to-chip cooling market was penetrated, with opportunities growing as rack densities increase. He also cited about 70 fabs expected to be built by 2030 and projected semiconductor water demand to grow more than 600% by 2050. Ecolab’s acquisition of Ovivo’s Ultra-Pure Water business extended its services into chip-production water needs and across the fab lifecycle. Of 26 analysts covering Ecolab, 21 rated the stock buy or strong buy, according to LSEG data. Shares had risen more than 16% year to date.