Royal Bank Of Canada Boosts Xylem (NYSE:XYL) Price Target to $164.00

Xylem (NYSE:XYL) had its target price hoisted by stock analysts at Royal Bank Of Canada from $159.00 to $164.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has an “outperform” rating on the industrial products company’s stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 33.90% from the company’s previous close.

XYL has been the subject of several other research reports. Weiss Ratings lowered shares of Xylem from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. CLSA upgraded shares of Xylem to a “hold” rating in a report on Thursday, June 25th. Citigroup reaffirmed a “buy” rating on shares of Xylem in a research report on Wednesday. Robert W. Baird increased their price target on Xylem from $163.00 to $165.00 and gave the company an “outperform” rating in a report on Wednesday. Finally, Stifel Nicolaus set a $160.00 price objective on Xylem in a research report on Wednesday. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $153.85.

Xylem Trading Down 2.0%

Shares of NYSE:XYL traded down $2.49 during trading on Wednesday, reaching $122.48. 224,503 shares of the stock were exchanged, compared to its average volume of 2,010,726. The firm’s 50-day moving average price is $114.64 and its 200 day moving average price is $122.45. The firm has a market cap of $29.11 billion, a price-to-earnings ratio of 30.52, a price-to-earnings-growth ratio of 1.71 and a beta of 1.03. Xylem has a 12-month low of $105.29 and a 12-month high of $154.27. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46.

Xylem (NYSE:XYL) last posted its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.34 by $0.12. The firm had revenue of $2.34 billion for the quarter, compared to analyst estimates of $2.34 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. Xylem’s revenue for the quarter was up 1.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.26 earnings per share. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. On average, sell-side analysts anticipate that Xylem will post 5.52 earnings per share for the current fiscal year.

Insider Activity

In related news, CAO Geri-Michelle Mcshane sold 4,269 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $117.46, for a total value of $501,436.74. Following the transaction, the chief accounting officer owned 3,605 shares in the company, valued at approximately $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Jerome A. Peribere purchased 1,210 shares of Xylem stock in a transaction that occurred on Monday, May 4th. The stock was acquired at an average cost of $116.61 per share, with a total value of $141,098.10. Following the acquisition, the director directly owned 27,209 shares of the company’s stock, valued at $3,172,841.49. The trade was a 4.65% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Xylem

Institutional investors have recently made changes to their positions in the business. Callahan Advisors LLC acquired a new stake in shares of Xylem during the 4th quarter worth approximately $1,721,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Xylem by 2,309.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company’s stock worth $54,314,000 after purchasing an additional 413,904 shares during the last quarter. Abacus Wealth Partners LLC acquired a new position in Xylem during the 4th quarter valued at approximately $1,663,000. Norges Bank bought a new position in Xylem during the 4th quarter worth $361,012,000. Finally, MUFG Securities EMEA plc grew its stake in Xylem by 608.1% during the 4th quarter. MUFG Securities EMEA plc now owns 32,990 shares of the industrial products company’s stock worth $4,493,000 after buying an additional 28,331 shares during the last quarter. 87.96% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Raised profit outlook: Xylem lifted its 2026 adjusted EPS guidance to $5.55-$5.70 from $5.35-$5.60, above the roughly $5.53 analyst consensus. Revenue guidance remained approximately $9.2 billion, although some coverage characterized it as lower than previously expected. Reuters article
• Positive Sentiment: Quarterly earnings beat: Second-quarter adjusted EPS was $1.46, exceeding the $1.34 consensus and rising from $1.26 a year earlier. Revenue reached $2.34 billion, broadly in line with expectations and up about 1.5% year over year. Xylem second-quarter results
• Positive Sentiment: Orders and margins strengthened: Second-quarter orders jumped 42% reported, or 41% organically, while adjusted EBITDA margin expanded 150 basis points to 23.3%. Cost savings, pricing and favorable mix supported the improvement. Zacks earnings article
• Positive Sentiment: AI infrastructure demand: Management said data-center and AI investment is increasing water-related spending across semiconductors, power generation, mining, food and beverage, and life sciences, offsetting weakness in utility markets. Yahoo Finance article
• Positive Sentiment: Analyst support: Robert W. Baird raised its price target to $165 from $163 and upgraded its stance to “Outperform,” implying substantial upside from the referenced price. William Blair also reaffirmed a Buy rating based on water-infrastructure and data-center demand. Ticker Report article
• Neutral Sentiment: At approximately 31 times earnings, XYL’s valuation leaves the stock dependent on continued earnings growth and successful conversion of its strong order pipeline.
• Negative Sentiment: Utility-market weakness and the softer sales outlook could limit near-term revenue growth, despite the improved profit forecast.

About Xylem

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.