UPDATE: Atlantic Equities Upgrades Xylem (XYL) to Overweight

Atlantic Equities analyst Richard Radbourne upgraded Xylem (NYSE: XYL) from Neutral to Overweight with a price target of $129.00.

The analyst comments "Supply-chain constraints weighed heavily on Xylem during H221/H122 within its M&CS business, although these are now easing and should allow this business to become an EPS tailwind during FY23. Furthermore, we expect the company's large opex exposure within water infrastructure markets to again prove resilient in a recession that is widely anticipated next year. Against this backdrop, we believe the potential for mid-teen EPS growth in FY23 will compare favourably to the broader industrial sector, while we view valuation to be more accommodating than twelve months ago. We therefore upgrade to Overweight."

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 $112.13 yesterday.

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