Goldman Sachs Still Wants You to Sell Mueller Water Products

Goldman Sachs analysts Jerry Revich and Terry Darling reiterated their sector relative Sell rating for Mueller Water Products, Inc. (NYSE: MWA)

Despite taking MWA off its Americas Conviction Sell List, Goldman Sachs still thinks MWA is underperforming relative to its industry peers.

According to the analysts, "Our 2011-12 estimates are 24% below consensus forecasts which assume sharply higher pricing despite low industry capacity utilization and muted recent price increase announcements. We expect earnings over the balance of the year to reveal a slower return to profitability, driving 2011-12 consensus forecasts lower."

Goldman's price target for MWA is $3.80. MWA is currently trading at $3.57.