Xylem downgraded to Hold on decelerating trends at TD Cowen

TD Cowen downgraded Xylem to Hold from Buy with an unchanged price target of $138. While the company’s core municipal markets should remain firm, near-term estimates lack upside and the company’s revenue and margin trends are decelerating, the analyst tells investors in a research note. With the shares trading at 30-times forward earnings, TD believes a further re-rating of the shares seems challenging. It cites decelerating trends and Xylem’s high multiple for the downgrade.