Xylem Likely Approaching Growth Inflection, Oppenheimer Says

MT Newswires Live07-14 23:02

Xylem (XYL) remains on track with its normalized organic growth and margin expansion trajectory amid lingering concerns of some investors, Oppenheimer said in a note Monday.

The report said the company's balance sheet strength and capital deployment optionality is also broadly underappreciated.

Importantly, the note said concerns over US federal funding are materially overdone, with high-level water and wastewater capex reads still favorable.

"Given solid core demand, broad-based secular growth catalysts, self-help runway, needle-moving capital deployment prospects, and supportive valuation, we remain XYL bulls," the report said.

Oppenheimer kept its outperform rating and $158 price target, saying investors should look beyond near-term noise and buy into a differentiated through-the-cycle water technology play.

Price: 121.82, Change: +0.61, Percent Change: +0.50

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment