RBC Capital Reiterates Outperform Rating on Xylem (XYL)

RBC Capital analyst Deane Dray reiterated an Outperform rating and $162.00 price target on Xylem (NYSE: XYL).

The analyst comments "Outperform-rated Xylem is hosting a pivotal May-30 analyst meeting at its Washington, DC headquarters. All eyes will be on CEO Matthew Pine and CFO Bill Grogan’s plan for optimizing Xylem’s portfolio for profitability/growth. To be clear, Xylem’s first 10 years was Patrick Decker’s visionary portfolio buildout to a first-of-its-kind water solutions technology company. Now, the new leadership’s mandate is to optimize this portfolio using the recently adopted 80/20 tools. We expect an annual margin target of +50-75 bps improvement. We believe that 400 bps improvement to ~24% by YE2027 is achievable but point-specific/date-specific targets are generally inflexible/ultimately disappointing."

For an analyst ratings summary and ratings history on Xylem click here. For more ratings news on Xylem click here.

Shares of Xylem closed at $144.25 yesterday.

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