Raymond James analyst Pavel Molchanov made no change to the firm’s Underperform rating on Xylem (XYL). The analyst tells investors in a research note that Xylem is getting back into the M&A game after six years in a "pricey" way, and as much as the analyst wanted to see Xylem resume its historical role as a consolidator, it’s $7.5B all-stock acquisition of Evoqua (AQUA) "is emphatically not what we had in mind." Raymond James estimates zero EPS accretion for Xylem in 2024, even with synergies, but thinks deal approval from Xylem’s shareholders it not a sure thing.
Published first on TheFly
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Read More on XYL:
- Xylem falls -8.7%
- Xylem Tanks on $7.5B Evoqua Acquisition
- Evoqua Water jumps 14% to $46.71 after Xylem buyout offer
- Xylem to acquire Evoqua Water in $7.5B all-stock transaction
- Xylem price target raised to $115 from $105 at Morgan Stanley
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