The Price Is Interesting, The Catalyst Path Is Challenging

研报英文原文证据摘录

The Price Is Interesting, The Catalyst Path Is Challenging

Diversified Industrials, Automation & Robotics: Water Infrastructure & Equipment

Xylem

TD SECURITIES (USA) LLC ESTIMATE CHANGES

May 15, 2026

Price: $109.44 (05/14/2026) The Price Is Interesting, The Catalyst Path Is

Price Target: $135.00 Challenging

HOLD (2)

ESG SCORE: 64/100

Joe Giordano, CFA THE TD COWEN INSIGHT

646 562 1405

From an execution and strategy standpoint, we like where XYL stands, and the price today is

joe.giordano@tdsecurities.com

intriguing, but with federal funding lapsing, rates remaining high, and a big ramp required in

Michael Anastasiou 2H, we believe the setup is still tough. We think XYL will navigate well, but the investor talking

646 562 1437 points right now are headwinds, particularly when the high end of the growth guide is tough to

michael.anastasiou@tdsecurities.com

get to.

Chris Grenga, CFA

646 562 1387 Please see takeaways from our recent water policy dinner with XYL HERE.

chris.grenga@tdsecurities.com

Our model is little changed on a net basis. The 2H ramp embedded in guide is still an investor

Key Data concern, and, given the negative reads in markets like metering, it's understandable. China

Symbol NYSE: XYL remains weak, conflict is still ongoing in Europe/Mideast, and non-data-center building in the

Beta: 1.08 US faces the prospect of high rates (both on institutional and residential). It's a challenging

52-Week Range: $152.95-$109.01 backdrop exacerbated by the funding from IIJA ($50B over 5 years) ending in September. The

Market Cap: $26.0B true impact of that funding likely doesn't have a material impact on XYL's near-term results

Net Debt (MM): $1,253.0 (and really didn't change the growth of the municipal market while it was in place), but our