Zacks Upgrades Xylem to “Neutral” (XYL)
Xylem (NYSE:XYL) was upgraded by Zacks from an “underperform” rating to a “neutral” rating in a research report issued on Thursday, AmericanBankingNews.com reports. The firm currently has a $29.00 price target on the stock. Zacks‘ target price indicates a potential upside of 6.58% from the company’s current price.
Zacks‘ analyst wrote, “We are upgrading our recommendation on Xylem to Neutral based on the company’s continuous contract wins. In October, Xylem won a $6.5 million contract in Singapore, which followed the September contract win in China. The Chinese contract was worth $1.9 million, and is considered to be the largest ozone contract. Also, the company expects to spend $120.0 million on acquisitions in the second half of 2013 to gain a greater market share overseas. The improvement in the commercial, residential and agriculture businesses also strengthens our belief in a bright future. However, the continuous downward revisions of guidance by the management cannot be overlooked. Xylem’s earnings per share in the second quarter of 2013 declined 27% year over year to $0.36, due to a reduction in demand in Europe and other emerging markets accompanied by negative impacts from the foreign currency exchanges. These factors are expected to be present in the quarters ahead as well.”
A number of other firms have also recently commented on XYL. Analysts at Barclays Capital upgraded shares of Xylem from an “equal weight” rating to an “overweight” rating in a research note to investors on Thursday, September 26th. They now have a $33.00 price target on the stock, up previously from $26.00. Separately, analysts at DA Davidson downgraded shares of Xylem from a “neutral” rating to an “underperform” rating in a research note to investors on Wednesday, July 31st. They now have a $23.00 price target on the stock, down previously from $28.00. Finally, analysts at Canaccord Genuity downgraded shares of Xylem from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, July 31st. They now have a $27.00 price target on the stock, down previously from $31.50. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $28.50.
Shares of Xylem (NYSE:XYL) traded up 2.32% on Thursday, hitting $27.84. 343,239 shares of the company’s stock traded hands. Xylem has a one year low of $23.41 and a one year high of $29.79. The stock’s 50-day moving average is $26.60 and its 200-day moving average is $27.18. The company has a market cap of $5.158 billion and a price-to-earnings ratio of 21.94.
Xylem (NYSE:XYL) last posted its quarterly earnings results on Tuesday, July 30th. The company reported $0.36 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.44 by $0.08. The company had revenue of $960.00 million for the quarter, compared to the consensus estimate of $967.90 million. During the same quarter last year, the company posted $0.49 earnings per share. Xylem’s revenue was down .6% compared to the same quarter last year. Analysts expect that Xylem will post $1.43 EPS for the current fiscal year.
Xylem Inc (NYSE:XYL), formerly ITT WCO, Inc, is a provider of equipment and service for water and wastewater applications with a portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment.
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