Xylem's (XYL) year-to-date stock performance is reflective of investor fears regarding sustained top-line pressures, and potentially muted earnings growth, Oppenheimer said in a note Wednesday.
The brokerage lowered 2026 and 2027 EPS estimate to $5.67 and $6.25 from $5.72 and $6.35, respectively, with material upside coming from cross-selling, large project opportunities, continued benefits from 80/20 portfolio simplification going forward.
Additionally, Oppenheimer said that it remains bullish on re-accelerating core growth during 2027, and anticipates Xylem's organic sales trajectory to return to mid-single digit growth next year.
Oppenheimer maintained its outperform rating with a $150 price target.
Price: 102.88, Change: +0.33, Percent Change: +0.33
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