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Investing.com - TD Cowen raised its price target on Xylem (NYSE:XYL) to $130.00 from $125.00 on Monday, while maintaining a Hold rating on the water technology company’s stock. The stock currently trades at $142.67, near its 52-week high of $145.33, with a market capitalization of $34.8 billion. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The research firm cited Xylem’s strong positioning within a secularly important market, though it noted that order comparisons will become more challenging in the second half of the year despite second-quarter orders exceeding TD Cowen’s model.
TD Cowen highlighted that Xylem’s operational strategy is working, with management’s framework calling for 100 basis points of annual EBITDA margin improvement, which appears on track for this year.
The firm observed that Wall Street is already modeling similar success for next year, with 2025 EBITDA margins likely up nearly 500 basis points versus 2022 levels.
TD Cowen acknowledged that Xylem’s management team has earned investor confidence, but cautioned that with the base case now matching the target, obvious upside will likely be harder to achieve.
In other recent news, Xylem Inc. reported financial results that exceeded expectations for the second quarter of 2025. The company achieved earnings per share of $1.26, surpassing analyst projections by $0.11. Additionally, Xylem’s revenue reached $2.3 billion, which was higher than the anticipated $2.21 billion. These results reflect a strong performance for the quarter. The company’s financial success was a notable development for investors. Analyst firms have taken note of this performance, though there were no specific upgrades or downgrades reported. These recent developments highlight the company’s ability to exceed market expectations.
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