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On Wednesday, Citi analyst Andrew Kaplowitz adjusted the price target for Xylem , a leading global water technology company with a market capitalization of $31.4 billion, signaling confidence in the firm’s growth potential. The new price target is set at $152.00, an increase from the previous $147.00, while the Buy rating remains unchanged. According to InvestingPro data, analyst targets for Xylem range from $114.15 to $168, with the stock currently trading near $129.24.
Kaplowitz’s stance comes after a review of Xylem’s fourth-quarter results and the company’s initial 2025 outlook. The anticipated adjusted EBITDA margin expansion of 70 to 120 basis points is seen as a result of successful simplification efforts by Xylem. These efforts are in line with the company’s long-term financial framework that was introduced in 2024. The company has demonstrated strong execution, with revenue growing 16.27% over the last twelve months.
Despite a projected modest dip in organic growth for 2025 to 3-4%, compared to Xylem’s long-term target of 4-6%, the analyst believes this was largely expected by the investment community. The company’s solid margin expansion outlook for 2025, even in the face of expected mix headwinds in the Measurement & Control Solutions (M&CS) segment, coupled with healthy organic order trends observed in the fourth quarter, are viewed as positive indicators of Xylem’s potential for sustained earnings growth.
Xylem’s commitment to operational efficiency and financial performance is underscored by the positive remarks from Citi, reflecting a broader investor sentiment that the company is on a firm path toward achieving its strategic financial goals.
Shares of Xylem (NYSE: XYL) are likely to be influenced by these developments, as the market processes the implications of the revised price target and the maintained Buy rating by Citi. The water technology company continues to navigate the competitive landscape with a focus on growth, margin improvement, and long-term shareholder value.
In other recent news, Xylem Inc (NYSE:XYL). has reported fourth-quarter earnings that exceeded analyst predictions, while issuing a cautious revenue forecast for 2025. The company’s adjusted earnings per share for Q4 were $1.18, surpassing the consensus estimate of $1.13. Additionally, Xylem’s revenue increased by 7% year-over-year, reaching $2.3 billion and exceeding expectations of $2.18 billion.
For the full year of 2024, the company reported a revenue of $8.6 billion, marking a 16% increase on a reported basis and a 6% organic increase from 2023. Adjusted earnings per share rose by 13% year-over-year to $4.27.
However, Xylem’s 2025 revenue forecast ranges between $8.6 billion and $8.7 billion, falling short of the $8.84 billion that analysts had anticipated. The company also projects an adjusted EBITDA margin of 21.3% to 21.8%, indicating an increase of 70 to 120 basis points from 2024. These recent developments provide crucial insights into Xylem’s financial performance and future expectations.
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