Xylem (NYSE:XYL) Downgraded to "Hold" Rating by UBS Group

Key Points

• UBS downgraded Xylem from "strong-buy" to "hold," reflecting mixed analyst sentiment overall (eight Buys vs. seven Holds) and an average target price of $153.77.
• Board authorized a $1.5 billion share repurchase, equal to roughly 4.8% of outstanding shares, signaling management believes the stock may be undervalued.
• Q4 results met expectations with $1.42 EPS and 6.3% revenue growth year-over-year, and Xylem set FY2026 guidance of $5.35–$5.56 in EPS.

Xylem (NYSE:XYL - Get Free Report) was downgraded by equities research analysts at UBS Group from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

XYL has been the subject of a number of other reports. Royal Bank Of Canada reduced their target price on shares of Xylem from $176.00 to $162.00 and set an "outperform" rating for the company in a research note on Wednesday, February 11th. Mizuho set a $138.00 target price on shares of Xylem in a research note on Wednesday, February 11th. Oppenheimer reissued an "outperform" rating and set a $160.00 target price (down from $165.00) on shares of Xylem in a research note on Wednesday, April 1st. Wall Street Zen lowered shares of Xylem from a "buy" rating to a "hold" rating in a research note on Saturday, December 27th. Finally, Robert W. Baird set a $161.00 target price on shares of Xylem in a research note on Wednesday, February 11th. Eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $153.77.

Xylem Trading Down 0.3%

Xylem stock opened at $120.05 on Tuesday. The company has a quick ratio of 1.28, a current ratio of 1.62 and a debt-to-equity ratio of 0.12. The firm has a 50-day moving average price of $124.42 and a two-hundred day moving average price of $136.04. The firm has a market capitalization of $29.19 billion, a price-to-earnings ratio of 30.63, a PEG ratio of 1.73 and a beta of 1.18. Xylem has a 52-week low of $109.26 and a 52-week high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last posted its earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. Xylem's revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter last year, the business posted $1.18 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Sell-side analysts expect that Xylem will post 5.47 earnings per share for the current year.

Xylem announced that its board has authorized a share repurchase program on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to purchase up to 4.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Xylem

A number of institutional investors have recently added to or reduced their stakes in the company. Ferguson Wellman Capital Management Inc. acquired a new stake in Xylem during the third quarter valued at approximately $1,148,000. Vanguard Personalized Indexing Management LLC lifted its stake in Xylem by 19.0% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 56,216 shares of the industrial products company's stock valued at $8,292,000 after purchasing an additional 8,960 shares during the last quarter. Fisher Asset Management LLC lifted its stake in Xylem by 6.4% during the third quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company's stock valued at $59,681,000 after purchasing an additional 24,352 shares during the last quarter. Covea Finance lifted its stake in Xylem by 25.5% during the third quarter. Covea Finance now owns 231,547 shares of the industrial products company's stock valued at $34,153,000 after purchasing an additional 47,000 shares during the last quarter. Finally, AEGON ASSET MANAGEMENT UK Plc lifted its stake in Xylem by 9.8% during the third quarter. AEGON ASSET MANAGEMENT UK Plc now owns 417,651 shares of the industrial products company's stock valued at $61,629,000 after purchasing an additional 37,189 shares during the last quarter. 87.96% of the stock is currently owned by institutional investors and hedge funds.

Xylem Company Profile

Xylem Inc NYSE: XYL is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.