01:42 PM EDT, 04/09/2024 (MT Newswires) -- Ecolab ( ECL ) remains on track to reach around 200 basis points of margin expansion in 2024, given the momentum in the business, volume inflection, and price and cost tailwinds, RBC Capital Markets said in a note emailed Tuesday.

The firm said it expected the company to report Q1 adjusted operating margin of 14.8%, above the consensus estimate of 14.3%, and adjusted earnings per share of $1.35, above the consensus of $1.33 and toward the upper end of Ecolab's ( ECL ) guidance range.

Meanwhile, Q1 revenue was modeled to grow 3.7% to $3.70 billion, below the consensus of $3.75 billion or 5% year over year growth. RBC said it was modeling revenue estimate below consensus due to expectations that sales growth due to price and cost tailwinds would be offset by weakness in Europe, which contributes about 21% of sales, and parts of the business.

For Q2, the firm estimates an EPS of $1.49, below the consensus of $1.54 but in line with the company's expected guidance for $1.47 to $1.57.

RBC has an outperform rating on the company's stock with a price target of $238.

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