Xylem a top water-related idea into earnings, says Baird

Baird did a deep dive into the sub-sectors in his coverage universe and said Xylem is his top water-related idea given the pathway for sustained differentiated earnings. The firm sees upside to 4Q earnings and 2024 guidance to conservatively band consensus, with upside to emerge through the year. They note the May 30 analyst day will be important for framing the long-term opportunity from new leadership’s perspective and notes there is high investor interest on the topic/event. Baird maintains its Outperform rating and $116 price target on Xylem shares.