Xylem's Price Target Lowered At Credit Suisse, RBC Capital, Rosenblatt After Investor Day

Credit Suisse analyst John Walsh lowered Xylem Inc's XYL price target from $110 to $105, implying a downside of 13%, and maintained an Underperform rating.
RBC Capital analyst Deane Dray lowered the price target to $136 (implying an upside of 12%) from $140 and maintained an Outperform rating on the shares.
Dray attributes the price target change to the company's analyst day announcement that supply chain headwinds have pushed about $100M of sales into 2022, but this is "unsurprising" given the worsening inflation and supply chain disruptions impacting all manufacturers today.
He further notes that the presentation focused on Xylem's plan to grow high-margin digital sales from the current 35% of revenues to over 50% by 2025, representing a "compelling dimension" of the company's "highly differentiated" growth strategy.
Related Content: Xylem Reaffirms Growth Strategy; Foresees ~$100M Adverse Revenue Impacts In 2H
Rosenblatt analyst Scott Graham downgraded Xylem to Hold from Buy and lowered the price target to $120 (implying a downside of 1%), from $140.
Graham noted that management said the supply situation has worsened in recent weeks. He has cut his estimates and was also "somewhat disappointed" in Xylem's 2021-2025 margin expansion targets.
Price Action: XYL shares are trading lower by 1.98% at $121.23 on the last check Friday.

Momentum33.05

Growth72.50

Quality58.18

Value4.44

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