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Xylem’s Strategic Positioning and Limited Growth Prospects Lead to Hold Rating

Xylem’s Strategic Positioning and Limited Growth Prospects Lead to Hold Rating

In a report released today, Joseph C Giordano from TD Cowen maintained a Hold rating on Xylem (XYLResearch Report), with a price target of $125.00.

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Joseph C Giordano has given his Hold rating due to a combination of factors involving Xylem’s financial outlook and strategic positioning. The adjustments to FY25 earnings estimates are minor overall, yet the shift towards the fourth quarter creates a more difficult environment. Additionally, order growth is anticipated to be limited for the year, trailing behind revenue growth. The management’s guidance for Measurement & Control Solutions (M&CS) appears optimistic following a predicted slow start, although there is a possibility that Water Infrastructure (WI) could counterbalance this. While the management’s 80/20 initiatives are expected to yield positive results, short-term projections do not indicate significant gains relative to market expectations. Consequently, current share valuations do not suggest immediate opportunities for substantial returns.

C Giordano covers the Industrials sector, focusing on stocks such as Symbotic, IDEX, and Mueller Water Products. According to TipRanks, C Giordano has an average return of 9.4% and a 62.72% success rate on recommended stocks.

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