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Xylem Is A Secular Winner On Structurally Improved Portfolio, Analyst Says

Published 19/10/2023, 19:00
© Reuters.  Xylem Is A Secular Winner On Structurally Improved Portfolio, Analyst Says
XYL
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Benzinga - by Lekha Gupta, Benzinga Editor.

Oppenheimer analyst Bryan F. Blair upgraded Xylem Inc (NYSE: XYL) to Outperform from Perform and introduced a price target of $118.

The analyst's rating upgrade reflects his confidence in Xylem's structurally improved portfolio, continued beat & raise prospects, and medium-term growth prospects.

The analyst views other trading headwinds as largely transitory and says that combined Xylem–Evoqua operations can drive profitable growth over the coming years.

Also Read: Xylem And Evoqua Merger: The Blueprint For Leading Global Smart Water Infrastructure, Predicts Analyst

The analyst projects steady top-line and cash flow growth going forward, given Xylem's backlog of ~$5.3 billion, resilient core WI demand, and benefit from a notably long tail for AMI adoption.

The analyst revised EPS to $3.67 (from $3.70) in FY23 and $4.12 (from $4.20) for FY24. He introduced FY25 EPS of $4.65 with expected revenue synergies (and related incremental drop-through), driving solid upside vs. 2024-25 projections.

Price Action: XYL shares are trading higher by 2.16% at $92.29 on the last check Thursday.

Latest Ratings for XYL

DateFirmActionFromTo
Feb 2022Credit SuisseMaintainsUnderperform
Jan 2022Raymond JamesDowngradesMarket PerformUnderperform
Dec 2021MizuhoInitiates Coverage OnNeutral
View More Analyst Ratings for XYL

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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