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Trang chủ » According to Goldman Sachs, this water technology stock has the potential to surge almost 25% after a game-changing acquisition.

According to Goldman Sachs, this water technology stock has the potential to surge almost 25% after a game-changing acquisition.

This water tech stock can rally nearly 25% following 'transformative' acquisition, Goldman says

This water tech stock can rally nearly 25% following ‘transformative’ acquisition, Goldman says

Goldman Sachs Recommends Buying Xylem After Evoqua Acquisition

Investors should consider buying shares of water technology firm Xylem after its acquisition of fellow firm Evoqua, according to Goldman Sachs. The bank has reinitiated its buy rating on Xylem and set a price target of $133, which represents a 24.2% upside from the stock’s close on Wednesday. Analyst Brian Lee noted that the acquisition strengthened Xylem’s market position, broadened its portfolio of water infrastructure and treatment solutions, and added to its environmental, social and corporate governance credentials. Lee also highlighted the revenue and cost synergies that could be realised through the deal. Nevertheless, Lee warned of potential challenges, such as supply chain disruptions and slower-than-anticipated organic growth.

FAQs:

What is Xylem?

Xylem is a global water technology company that produces products and services for water and wastewater facilities.

What is Evoqua?

Evoqua is a water technology firm that focuses heavily on industrial customers rather than utilities.

Why has Goldman Sachs recommended buying Xylem?

Goldman Sachs has recommended buying Xylem in light of its acquisition of Evoqua, which has strengthened the company’s market position and added to its portfolio of water infrastructure and treatment solutions.

What is the price target for Xylem?

Goldman Sachs has set a price target of $133 for Xylem shares, which represents a 24.2% increase from their closing price on Wednesday.

This water tech stock can rally nearly 25% following 'transformative' acquisition, Goldman says
This water tech stock can rally nearly 25% following ‘transformative’ acquisition, Goldman says

Goldman predicts a potential 25% surge in shares of water technology company after a game-changing acquisition.

Goldman Sachs has recommended that investors buy Xylem shares following its acquisition of fellow water technology firm Evoqua. The bank reinitiated its buy rating on Xylem with a price target of $133, which implies a 24.2% upside from the stock’s Wednesday closing price. Analyst Brian Lee said that the acquisition would add to Xylem’s already broad portfolio of water infrastructure and treatment solutions, strengthen its position in industrial end markets and further establish Xylem as an ESG winner, while also unlocking meaningful cost synergies in the years to come. Lee noted the potential for between 3% and 6% upside to revenue and to add between 4% and 15% to EBITDA.

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