Xylem price target raised to $123 from $109 at Citi

Citi analyst Andrew Kaplowitz raised the firm’s price target on Xylem to $123 from $109 and keeps a Neutral rating on the shares. The analyst says megatrends and "still emerging fiscal tailwinds" should help moderate potential downside for industrials in a slowing macro-economic environment. In addition, improving price versus cost trends and gradually improving supply chains should remain supportive of improving profitability for much of the group, Kaplowitz tells investors in a 2023 outlook research note. He recommends stocks where he sees "favorable multi-year trends as supportive of ongoing opportunity." Kaplowitz sees Quanta Services (PWR), MasTec (MTZ), Aecom (ACM) as well positioned in engineering and construction. His top picks in multis include Ingersoll Rand (IR), Rockwell Automation (ROK), Trane Technologies (TT), Emerson Electric (EMR) and Dover (DOV). The analyst also instituted "negative catalyst watches" on Fortive (FTV) and Vertiv Holdings (VRT).