Takeaways From Xylem Analyst Day
<p>Analysts at Berenberg Bank lowered their price target on <a href='https://financialmodelingprep.com/financial-summary/XYL'>Xylem Inc. (NYSE:XYL) </a>to $122 from $125 following the virtual analyst day, where the company emphasized digital strategy, with long-term outlook remaining largely in line with investors’ expectations.</p>
<p>The company adjusted its long-term financial outlook, estimating organic growth to range from 4 to 6% and adjusted EBITDA margin expansion of 50-75bp per year. The analysts view the sales outlook as conservative over the medium term (Street expects approximately 6% growth in 2022 and 2023) given likely infrastructure stimulus, the accelerating adoption of digital solutions, and a greater corporate focus on sustainability. </p>
<p>For 2021, the company said it is experiencing higher-than-expected growth in orders and backlog, however, the supply chain has become increasingly volatile, with escalating electronic component shortages. The company now expects an adverse revenue impact of $100 million in the second half of 2021, which is expected to be pushed to 2022. </p>
<p>Berenberg Bank decreased its 2021 estimates modestly and reduced its 2022 margin assumptions slightly as it assumes supply chain issues linger into next year. </p>

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