JPMorgan Begins Coverage of Xylem (XYL) Stock with Overweight Rating

On May 30, JPMorgan began coverage on Xylem Inc. (NYSE:XYL)’s stock with an “Overweight” rating and a price objective of $148.00, as reported by The Fly. The firm lauded the company’s position as a pure play in the water technology sector and considers it a strong long-term investment for those focused on industrial and sustainability markets. The coverage highlighted Xylem Inc. (NYSE:XYL)’s diverse and resilient end markets, which tend to benefit from multi-decade secular tailwinds.

A technician opening a valve in a water infrastructure facility.

As per JPMorgan, Xylem Inc. (NYSE:XYL)’s scarcity as one of the few publicly traded pure-play water technology companies continues to provide additional value. Furthermore, the firm believes that the company’s stock is presently trading at a discount as compared to its historical averages. This suggests that the current juncture provides a compelling entry point. Overall, the firm’s confidence stems from Xylem Inc. (NYSE:XYL)’s growth prospects and potential to reap the benefits arising from water technology solutions.

Despite the current market volatility, Xylem Inc. (NYSE:XYL) expects continued resilience in volumes, aided by the essential nature of its customers’ services and the company’s robust alignment with opex-driven spending. The company continues to offset the current tariff impacts via strategic pricing and proactive supply chain management.

Xylem Inc. (NYSE:XYL) is engaged in designing, manufacturing, and servicing engineered products and solutions for utility, industrial, and residential and commercial building services settings.

While we acknowledge the potential of XYL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than XYL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.