Xylem’s buyout of Evoqua ‘pricey,’ with no accretion, says Raymond James

Raymond James analyst Pavel Molchanov made no change to the firm’s Underperform rating on Xylem (XYL). The analyst tells investors in a research note that Xylem is getting back into the M&A game after six years in a "pricey" way, and as much as the analyst wanted to see Xylem resume its historical role as a consolidator, it’s $7.5B all-stock acquisition of Evoqua (AQUA) "is emphatically not what we had in mind." Raymond James estimates zero EPS accretion for Xylem in 2024, even with synergies, but thinks deal approval from Xylem’s shareholders it not a sure thing.