Wedbush Raises Price Target on Xylem (XYL) to $43 Following 1Q Beat

Wedbush reiterated a Neutral rating on Xylem (NYSE: XYL), and raised the price target to $43.00 (from $41.00), following the company's 1Q earnings report. Adjusted EPS was $0.35 vs. consensus estimates of $0.34. The upside was attributable to slightly better revenues and adjusted operating margins, largely in Water Infrastructure. The company raised EPS guidance to $1.98-$2.08 from $1.95-$2.05. All other guidance metrics remain unchanged.

Analyst David Rose commented, "Recent results were slightly better than the Wedbush and consensus estimates while providing further support to our view that Xylem is well positioned to benefit from a steady municipal recovery and ongoing productivity and cost reductions. As we noted in our recent downgrade on April 10th, the valuation upside appears to be limited; however, we believe the fundamentals continue to improve and would be more constructive on a pullback."

For an analyst ratings summary and ratings history on Xylem click here. For more ratings news on Xylem click here.

Shares of Xylem closed at $41.88 yesterday.

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