Xylem stock weakness a buying opportunity, says Argus

Xylen shares have underperformed over the last six months, up 1% compared to a gain of 13% for the S&P 500, offering a buying opportunity, Argus tells investors in a research note. Argus says Xylem’s (XYL) business is “fine,” and that the company has indicated confidence in its outlook with a recent 11% dividend increase. The firm, which is maintaining a Buy rating and $145 price target is looking for margin expansion from new growth opportunities and notes that Xylem is using partnerships and other acquisitions to expand its offerings, particularly in the utility and industrial end markets.