Nelson Peltz and his activist firm Trian Partners have released their latest target, and it is Pentair PLC (PNR, Financial).
The reasoning behind this stock position is that, in a world of high stock valuations, this is a company that represents compelling value.
Trian likes Pentair's brand strength, its cash-generating ability and its balance sheet.
Trian refers to Pentair's valuation as being 14 times cash earnings per share and notes that the company looks much less attractive if amortization expense is included in the valuation.
That large amortization expense is a big part of the reason that the market hasn't figured out the value here according to Trian.
