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On Friday, RBC Capital analysts reiterated an Outperform rating for Xylem stock (NYSE: XYL) and maintained a price target of $147.00. The water technology company, currently valued at $31.09 billion, trades at a P/E ratio of 34x. According to InvestingPro data, the stock has received upward earnings revisions from 7 analysts for the upcoming period. This decision follows a recent investor tour of the state-of-the-art advanced water treatment equipment system at the Massachusetts Institute of Technology (MIT) Nanotechnology lab in Boston.
Xylem’s ultrapure water system, originally designed by Evoqua, is a key component of the MIT Nanotech lab’s infrastructure. The $10 million, 10-stage treatment system is designed to transform Boston tap water into ultrapure water, which is essential for next-generation semiconductor fabrication and nanotechnology research.
During the Boston tour, RBC Capital hosted a lunch with Xylem’s Chief Financial Officer, Bill Grogan. At the event, discussions covered business updates, margin outlook, portfolio transformation, and an 80/20 strategy, all of which were described as positive at the margin.
RBC Capital continues to regard Xylem as its top pick in the water sector, highlighting the company’s advanced technology and strategic positioning in the market. The firm remains optimistic about Xylem’s potential for growth and innovation within the industry.
In other recent news, Xylem Inc (NYSE:XYL). reported a strong start to 2025, with first-quarter earnings surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.03, outperforming the forecast of $0.95, and revenue reached $2.1 billion, exceeding the anticipated $2.04 billion. Xylem’s revenue grew by 3% year-over-year, and its backlog reached $5.1 billion, indicating robust future demand. The company also announced a quarterly dividend of $0.40 per share for the second quarter, reinforcing its commitment to shareholder returns. JPMorgan recently initiated coverage of Xylem with an Overweight rating, citing the company’s strategic position in the water technology sector and a year-end 2025 price target of $148. Meanwhile, Raymond (NSE:RYMD) James rated Xylem with a Market Perform, noting both positive restructuring impacts and concerns over utility capital spending. These developments highlight Xylem’s ongoing efforts in operational efficiency and strategic acquisitions to enhance its technology portfolio.
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