UPDATE - Barclays Initiates Coverage on Xylem (XYL); High Asset Quality in This ITT Spin-off
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Price: $113.42 -0.02%
Rating Summary:
17 Buy, 24 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
17 Buy, 24 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays initiates coverage on Xylem (NYSE: XYL) with an Equalweight. PT $28.00.
Barclays analyst says, "Pure play exposure to water markets should make Xylem an interesting and differentiated asset. We consider Xylem to be the highest asset quality of the three ITT pieces and by far the most complete water platform in the industry. The long-term demand trends in water markets are attractive, with aging equipment in developed world and build-out of infrastructure in emerging markets. However, similar to our call in HVAC markets, we don't expect pent-up demand to drive outsized growth near term. Municipal spend will likely remain muted, particularly in Europe, and water utilities are likely to see only modest capex increases. With ~40%�of sales going to utilities, XYL is less cyclically geared than most peers. We're waiting for a more compelling time in the cycle when we favor an asset like XYL but it's middle of the pack for us at present."
"We think key to the Xylem story will be ability of drive higher EPS growth through build-out of emerging market infrastructure, margin improvement and acquisitions. At this point, however, it is not entirely clear whether XYL will be able to outgrow peers through the cycle."
To See Ratings Summary & History on XYL, Click Here
Barclays analyst says, "Pure play exposure to water markets should make Xylem an interesting and differentiated asset. We consider Xylem to be the highest asset quality of the three ITT pieces and by far the most complete water platform in the industry. The long-term demand trends in water markets are attractive, with aging equipment in developed world and build-out of infrastructure in emerging markets. However, similar to our call in HVAC markets, we don't expect pent-up demand to drive outsized growth near term. Municipal spend will likely remain muted, particularly in Europe, and water utilities are likely to see only modest capex increases. With ~40%�of sales going to utilities, XYL is less cyclically geared than most peers. We're waiting for a more compelling time in the cycle when we favor an asset like XYL but it's middle of the pack for us at present."
"We think key to the Xylem story will be ability of drive higher EPS growth through build-out of emerging market infrastructure, margin improvement and acquisitions. At this point, however, it is not entirely clear whether XYL will be able to outgrow peers through the cycle."
To See Ratings Summary & History on XYL, Click Here
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