Jefferies Upgrades Xylem (XYL) to Buy

Jefferies analyst Stephen Volkmann upgraded Xylem (NYSE: XYL) from Hold to Buy with a price target of $140.00 (from $130.00).

The analyst comments: “XYL touches every part of the water value chain (from measurement and treatment to distribution, and digital), with a recurring revenue anchored in utility opex. The company has an MSD organic growth algo that we expect to reassert as 80/20 walk-away peaks in 2026. Margins have expanded without a macro tailwind and are on track to hit 23% ahead of schedule, with a path to ~25% by 2028. Yet the stock trades at ~13x NTM EV/EBITDA, a 20%+ discount to its 10yr avg of ~17x. Our $140 PT (15x 2027E EBITDA) reflects a partial re-rating as growth resumes and the margin story becomes harder to ignore.”

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 $112.04 yesterday.

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