Xylem short report uncovers nothing new, says Baird

Baird analyst Michael Halloran said the recent short report on Xylem has uncovered nothing that is new. The report calls for meaningful multiple contraction based on well-known/dissected historical datapoints, misleading/inaccurate interpretations, and narrow analysis of the long-term opportunity for the combined company. Baird said the report does not bring new concerns to light and ultimately, it appears to come down to a valuation call, which in Baird’s view is misplaced. Baird maintained its Outperform rating and $128 price target on Xylem shares.