Citigroup Keeps Buy Rating on Xylem, Raises PT to $152

Citigroup Keeps Buy Rating on Xylem, Raises PT to $152

Citigroup has revised its price target for Xylem (XYL) to $152, maintaining a Buy rating on the stock. This update comes ahead of the industrial conglomerate sector's second-quarter earnings, with the firm expecting strong financial performance across the board. Citi analysts anticipate that most companies in the sector will slightly enhance their earnings forecasts for 2025 [1].

Based on Wall Street analysts' forecasts, the average target price for Xylem (XYL) is $140.59, with a high estimate of $164.00 and a low estimate of $118.22. The average target implies an upside of 7.36% from the current price of $130.95 [1]. Additionally, the consensus recommendation from 22 brokerage firms is a 2.0 rating, indicating an "Outperform" status [1].

GuruFocus estimates the GF Value for Xylem (XYL) to be $128.48 in one year, suggesting a downside of 1.89% from the current price of $130.95 [1].

Xylem's Q1 results exceeded expectations, driven by resilient demand and a book-to-bill ratio above 1. The company achieved revenue growth across all segments and delivered a 120 basis points expansion in EBITDA margin, resulting in double-digit EPS growth. Xylem reaffirmed its full-year 2025 guidance for both revenue and earnings per share, indicating confidence in its business outlook [2].

However, the company faced some challenges, such as a slight decrease in orders in the Water Solutions and Services segment and a decline in EBITDA margin in the Measurement & Control Solutions segment due to energy water mix challenges. Xylem also anticipates some demand falloff in the second half of the year due to pricing actions and evolving trade dynamics [2].

Xylem Inc. (XYL) is scheduled to announce its fiscal Q2 earnings before the market opens on Tuesday, Jul. 31. Analysts project the company to report a profit of $1.14 per share, up 4.6% from $1.09 per share in the year-ago quarter. The company holds a solid track record of consistently surpassing or meeting Wall Street's bottom-line estimates in the last four quarterly reports [2].

References:
[1] https://www.gurufocus.com/news/2974495/citi-boosts-price-target-for-xylem-xyl-to-152-xyl-stock-news
[2] https://www.inkl.com/news/earnings-preview-what-to-expect-from-xylem-s-report