Xylem upgraded to Buy from Hold at Stifel

Stifel analyst Nathan Jones upgraded Xylem (XYL) to Buy from Hold with a price target of $124, up from $115, after the company entered into a definitive agreement to acquire Evoqua (AQUA) in an all-stock transaction. The "low fundamental risk acquisition" provides "strong opportunity to drive higher growth together than separate," the analyst tells investors in a research note. The firm says Xylem shares are "on sale" following yesterday’s selloff and that the deal "is compelling just considering the cost synergies."