UPDATE: Ladenburg Thalmann Downgrades XYL to Neutral on Near-Term Concerns

Ladenburg Thalmann lowered its rating on Xylem (NYSE: XYL from Buy to Neutral and reduced its price target from $30 to $27. Ladenburg Thalmann commented, "Continue to believe XYL is among the most attractive stocks in our coverage universe from a long term perspective, offering investors compelling exposure to an attractive suite of products designed to meet a broad range of water and wastewater related challenges. … Due to near term factors, however, we recommend investors take a wait and see approach before adding to XYL positions. On balance we expect shares to remain range bound near term, as current valuation should limit significant downside risk, with shares trading 13.3x our Street-low 2013 EPS estimate (8.3x EBITDA)." Xylem closed at $24.98 on Wednesday.