Xylem downgraded to Peer Perform from Outperform at Wolfe Research

Wolfe Research downgraded Xylem (XYL) to Peer Perform from Outperform. The firm sees the potential for choppy organic growth trends through the first half of 2025, leading to a second half-weighted 2025, which could present a more attractive entry point for the stock, the analyst tells investors in a research note. While the long-term algorithm of 4%-6% organic growth and 100 basis points of annual margin expansion is still reasonable, Wolfe believes there could be continued noise through 1H25 on the top-line.