Market Overview

UPDATE: Wedbush Downgrades Xylem on Multiple Negative Factors

Share:

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

DateFirmActionFromTo
Oct 2020Credit SuisseMaintainsUnderperform
Oct 2020Raymond JamesMaintainsOutperform
Jul 2020Credit SuisseMaintainsUnderperform

View More Analyst Ratings for XYL
View the Latest Analyst Ratings

 

Related Articles (XYL)

View Comments and Join the Discussion!

Posted-In: David L. Rose WedbushAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
KALUBenchmarkUpgrades
YEXTDA DavidsonMaintains20.5
BYDB of A SecuritiesMaintains47.0
SAICMorgan StanleyMaintains98.0
PVHMorgan StanleyMaintains104.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com