Xylem initiated with bullish view at Wolfe Research, here’s why

Wolfe Research initiated coverage of Xylem with an Outperform rating and $127 price target. The analyst views Xylem as a “compounder in an attractive industry,” with earnings growth set to accelerate versus recent history. Xylem’s relative valuation is compelling given the stock’s underperformance in recent years, the analyst tells investors in a research note. The firm says Xylem is a market leader in a fragmented water market, with 10% market share of an $80B market.