Xylem initiated with a Buy at UBS

UBS analyst Damian Karas initiated coverage of Xylem with a Buy rating and $165 price target. The firm views Xylem as the leading pure-play water company. Xylem’s wide ranging product suite of water flow, test and measurement, treatment/ filtration equipment and services position the company well to benefit from several secular drivers, the analyst tells investors in a research note. UBS believes the company is operating from a position of strength after adjacent expansion via the $7.5B Evoqua acquisition in 2023.