Xylem's Strong Execution Overshadowed by Valuation Concerns and Flat Revenue Outlook, Leading to Hold RatingWe don't see excess risk here, but the bar isn't low either. Margin performance has been a clear tailwind, and there is an element of intentional wind down from 80/20 Affecting organic orders/revenues and comps were challenging after above trend growth in the covid aftermath. Conditions still appear favorable, and evidence of an inflection would go a long way. Shares aren't cheap at nearly 30x 2025E and ~25x 2026E, but XYL has traded significantly higher in the past, so it's not out of line from that standpoint.