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Xylem shares drop 15% post-earnings on smart metering delays but growth plans remain strong.

Analyst Insights
02 Nov 2026, 23:04 WIB
Seeking Alpha
View Source
Neutral
Xylem shares drop 15% post-earnings on smart metering delays but growth plans remain strong.

Xylem's stock fell about 15% after earnings due to delays in its smart metering segment, seen as a temporary issue. The company maintains a defensive business model with integrated water solutions and utility exposure, despite a narrow economic moat. It is restructuring its portfolio by divesting and realigning segments to boost growth and margins, aiming to reinvest proceeds into higher-growth acquisitions by 2027-2028. The analyst values Xylem at $115.25, suggesting a potential 25% upside and recommends a bullish options strategy to capitalize on this outlook with limited risk.

Xylem trades at USD 92.30 on Pluang as of Nov 03, 2026 04:01 WIB, up 1.70% in the last day. The stock's market cap is $21.19 billion, with a dividend yield of 1.86%. Despite recent earnings setbacks, Pluang users show a 58% sell and 42% buy order split, reflecting mixed sentiment.

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