Xylem price target raised to $140 from $120 at RBC Capital

RBC Capital analyst Deane Dray raised the firm’s price target on Xylem to $140 from $120 and keeps an Outperform rating on the shares as part of a broader research note previewing 2024 for Multi-Industry Sector in Industrials. Patterns of normalization are evident across the Multi-Industry sector, with supply chains approaching pre-pandemic throughput and orders are resetting to their historical size and cadence as lead times shorten, the analyst tells investors in a research note. Late-cycle capex spending is driven by electrification of everything, government-funded spending on infrastructure upgrades and grid hardening, reshoring, decarbonization, electric vehicles/batteries, GenAI/data center investments, and all the megatrends on water quality/scarcity/security, RBC added.