William Blair analyst Brian Drab has maintained their bullish stance on XYL stock, giving a Buy rating today.
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Brian Drab has given his Buy rating due to a combination of factors, starting with Xylem’s ability to slightly exceed market expectations on revenue, adjusted EPS, and adjusted EBITDA in the fourth quarter, while also delivering 4% organic sales growth across its portfolio. He highlights particularly strong momentum in the measurement and control solutions segment, which posted double-digit organic growth and helped lift overall company performance.
Drab also points to healthy demand indicators, noting that organic orders rose 7%, with measurement and control solutions orders jumping 22%, supporting visibility into future revenue despite a backlog that is 9% lower year-over-year at $4.6 billion. In addition, he views management’s 2026 outlook for 2%–4% organic growth as conservative given the deliberate exit from lower-margin business under the 80/20 initiative, which should enhance the company’s margin profile and earnings power over time.
According to TipRanks, Drab is a 5-star analyst with an average return of 35.0% and a 76.00% success rate. Drab covers the Industrials sector, focusing on stocks such as Xylem, Donaldson Company, and EnerSys.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $170.00 price target.