Xylem's Guidance Boost Driven by Buybacks, Bolt-On Acquisition, RBC Says
Xylem (XYL) raised its full-year profit outlook after posting a second-quarter operating beat, as strength in municipal water demand and industrial markets offset delays in electric meter deployments, RBC Capital Markets said in a note Tuesday.The company also deployed capital toward growth, closing a roughly $200 million deal for WaterFleet, a mobile water treatment business tied to AI-related end markets such as data centers, semiconductors and power generation, and repurchasing about $648 million of shares in the quarter, according to the note.The bank said Xylem's Water Solutions and Services unit also booked a large outsourced water contract with a major chemical company, marking its second big such win in as many quarters.RBC rates the stock Outperform and raised the price target to $164 from $159.Price: $122.64, Change: $-2.33, Percent Change: -1.87%