Xylem short report points not ‘new news,’ says Deutsche Bank

Deutsche Bank says the majority of the key points in the short report on Xylem yesterday are not “new news.” Rather, the report spotlights several debate items that have existed for some time, the analyst tells investors in a research note. The report “does point out some interesting accounting dynamics, but we view it as a positive that Xylem addressed the report mid-day, noting that it was misleading,” adds the firm. It agrees with this assessment. Deutsche reiterates a Hold rating as it sees limited near-term catalysts “for a name that continues to trade at healthy absolute multiples.”