02:55 AM EDT, 10/29/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target of $165, valuing shares at 29.5x our 2026 EPS outlook of $5.58 (up from $5.50; 2025 EPS lifted to $5.07 from $4.85). XYL delivered strong Q3 results with organic revenue growth of 7% Y/Y, exceeding expectations on broad-based strength across segments. Adjusted EBITDA margin expanded 200 bps to a record 23.2%, leading to EPS of $1.37, which beat consensus by $0.14. While bookings were roughly flat Y/Y due to tough Water Solutions comps and China softness, Measurement & Control orders rose 11% Y/Y, and both M&C and Water Solutions achieved double-digit organic sales growth of 11% and 10%, respectively. Management raised 2025 guidance, increasing revenue outlook to ~$9.0B (5%-6% growth vs. prior 4%-5%) and notably lifting adjusted EPS guidance to $5.03-$5.08 from $4.70-$4.85. We believe the strong margin expansion reflects benefits from XYL's simplification initiatives and effective cost management, with productivity savings and price realization offsetting inflationary pressures.