Merger Announcement: American Water Works and Essential Utilities have agreed to an all-stock, tax-free merger, creating a major regulated water and wastewater utility in the U.S. with a projected market capitalization of $40 billion.
Transaction Details: Essential stockholders will receive 0.305 shares of American Water for each share owned, reflecting a 10% premium, and the combined entity will serve approximately 4.7 million connections across 17 states.
Operational Benefits: The merger is expected to enhance infrastructure investment and operational efficiency, with American Water's CEO emphasizing the commitment to providing reliable and affordable services.
Leadership and Future Plans: Christopher H. Franklin will become executive vice chair, while John C. Griffith remains CEO; the merger is anticipated to be completed by the end of Q1 2027, pending regulatory approvals.
Wall Street analysts forecast XYL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XYL is 167.50 USD with a low forecast of 135.00 USD and a high forecast of 182.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast XYL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XYL is 167.50 USD with a low forecast of 135.00 USD and a high forecast of 182.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 142.910
Low
135.00
Averages
167.50
High
182.00
Current: 142.910
Low
135.00
Averages
167.50
High
182.00
Barclays
William Grippin
Overweight
downgrade
$172 -> $166
2026-01-07
Reason
Barclays
William Grippin
Price Target
$172 -> $166
AI Analysis
2026-01-07
downgrade
Overweight
Reason
Barclays analyst William Grippin lowered the firm's price target on Xylem to $166 from $172 and keeps an Overweight rating on the shares. The firm see scontinued steady growth in 2026 for the water technology group and prefers diversified exposures "as the sector navigates evolving funding dynamics."
Mizuho
Brett Linzey
Neutral
downgrade
$160 -> $150
2026-01-05
Reason
Mizuho
Brett Linzey
Price Target
$160 -> $150
2026-01-05
downgrade
Neutral
Reason
Mizuho analyst Brett Linzey lowered the firm's price target on Xylem to $150 from $160 and keeps a Neutral rating on the shares. The firm adjusted ratings and price targets in the electrical equipment and multi-industry group as part of its 2026 outlook. It sees "uneven terrain ahead" for the sector but says the "tariff fog" is clearing.
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TD Cowen
Joe Giordano
Hold
maintain
$130 -> $135
2025-12-05
Reason
TD Cowen
Joe Giordano
Price Target
$130 -> $135
2025-12-05
maintain
Hold
Reason
TD Cowen analyst Joe Giordano raised the firm's price target on Xylem to $135 from $130 and keeps a Hold rating on the shares. The firm updated its estimates following its recent municipal water spending survey and most recent results and outlook.
UBS
Damian Karas
Buy
maintain
$168 -> $175
2025-11-06
Reason
UBS
Damian Karas
Price Target
$168 -> $175
2025-11-06
maintain
Buy
Reason
UBS analyst Damian Karas raised the firm's price target on Xylem to $175 from $168 and keeps a Buy rating on the shares.
About XYL
Xylem Inc. is a water technology company. The Company designs, manufactures and services engineered products and solutions across a range of critical applications, primarily in the water sector. The Company’s Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, treatment equipment, and controls and systems. Its Applied Water segment's products include pumps, valves, heat exchangers, controls and dispensing equipment. Its Measurement & Control Solutions segment develops advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Company’s Integrated Solutions & Services segment provides equipment systems for industrial needs, full-scale outsourcing of operations and maintenance and municipal services, including odor and corrosion control services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
