0123 GMT - While tariffs are the immediate focus of investors in plumbing-fittings supplier Reliance Worldwide, UBS thinks the impact has likely been overestimated. Reliance has around US$120 million of costs exposed to China, so there is some risk, analyst Lee Power says. "But with inventory lags the material financial impact will be FY 2026 at the earliest," UBS says. It notes Reliance's confidence that it's better placed than many rivals. That's because Reliance is the only manufacturer of so-called push to connect fittings in the U.S., says UBS, and this "should largely offset any negative margin implications due to pricing leverage." UBS has a neutral call on Reliance. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 18, 2025 20:23 ET (01:23 GMT)

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