Xylem Upgraded by Zacks to “Outperform” (XYL)
Xylem (NYSE:XYL) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research report issued to clients and investors on Thursday, American Banking News.com reports. The firm currently has a $45.00 target price on the stock. Zacks‘ target price points to a potential upside of 20.32% from the stock’s previous close.
Zacks‘ analyst wrote, “Xylem reported improved year-over-year results for the fourth quarter of 2013. Earnings per share in the quarter increased 19% year over year to $0.56. Revenues increased 7% year over year to roughly $1.0 billion. We are bullish about Xylem’s long-term growth prospects. The company’s contract pipeline is strong, which improves the possibility of higher revenues in the coming quarters. Also, inorganic growth through acquisitions is anticipated to contribute immensely to revenue growth. Share buybacks and dividend distribution are the added benefits. The company has also been launching products to gain a significant market share. Based on these factors, we upgrade our recommendation on the stock to Outperform from Neutral.”
Xylem (NYSE:XYL) traded up 0.64% on Thursday, hitting $37.64. 366,560 shares of the company’s stock traded hands. Xylem has a 1-year low of $23.61 and a 1-year high of $37.59. The stock has a 50-day moving average of $35.10 and a 200-day moving average of $30.74. The company has a market cap of $6.948 billion and a P/E ratio of 30.66.
Xylem (NYSE:XYL) last announced its earnings results on Tuesday, February 4th. The company reported $0.56 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.36 by $0.20. The company had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $920.07 million. During the same quarter last year, the company posted $0.47 earnings per share. Xylem’s revenue was up 6.6% compared to the same quarter last year. On average, analysts predict that Xylem will post $1.95 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, March 19th. Investors of record on Wednesday, February 19th will be paid a dividend of $0.128 per share. This represents a $0.51 annualized dividend and a dividend yield of 1.37%. The ex-dividend date is Friday, February 14th. This is an increase from Xylem’s previous quarterly dividend of $0.12.
In other Xylem news, Director Markos Tambakeras sold 2,373 shares of Xylem stock in a transaction that occurred on Tuesday, February 11th. The stock was sold at an average price of $37.23, for a total value of $88,346.79. Following the completion of the transaction, the director now directly owns 23,477 shares in the company, valued at approximately $874,049. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Other equities research analysts have also recently issued reports about the stock. Analysts at Canaccord Genuity raised their price target on shares of Xylem from $34.00 to $36.00 in a research note on Wednesday, February 5th. Separately, analysts at Oppenheimer initiated coverage on shares of Xylem in a research note on Tuesday, January 21st. They set an “outperform” rating and a $44.00 price target on the stock. Eight analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. Xylem currently has a consensus rating of “Buy” and a consensus target price of $37.64.
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.
To view Zacks’ full report, visit www.zacks.com
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