UPDATE: Wedbush Downgrades Xylem on Multiple Negative Factors
In a report published Wednesday, Wedbush analyst David L. Rose downgraded Xylem (NYSE: XYL) from Outperform to Neutral, and lowered the price target from $32.00 to $27.00.
In the report, Wedbush noted, “We are lowering our rating on Xylem, Inc. to NEUTRAL from OUTPERFORM and removing the shares from the BIL (added on 12/13/2011 at $23.85) as we believe the company faces greater-than-expected margin headwinds amid more challenging end markets. In our view, the shares are likely to be range-bound until the company can demonstrate a more sustainable margin and growth trajectory. While the company's 2Q13 top-line results were generally in line with our expectations, the reduced revenue and margin outlook is troubling, suggesting management's near-term visibility has been impaired by volatility in end markets. Adjusted EPS was $0.36 versus consensus estimate of $0.44 (WS $0.47). Recent realignment actions to take out $30 million in costs are now likely to be muted by the worsening trends in Europe.”
Xylem closed on Tuesday at $25.54.
Latest Ratings for XYL
|Apr 2014||Stifel Nicolaus||Upgrades||Hold||Buy|
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