Spruce Point Capital Management Announces Investment Opinion: Releases Report And Strong Sell Research Opinion On Xylem Inc.
Portfolio Pulse from Benzinga Newsdesk
Spruce Point Capital Management has released a strong sell research opinion on Xylem Inc. (NYSE:XYL), citing concerns over Xylem's recent $7.5 billion acquisition of Evoqua Water Technologies. Spruce Point believes the acquisition combines two troubled companies that will fail to deliver value for shareholders. The firm also highlighted new accounting concerns and warned that Evoqua was charged for revenue fraud by the SEC and remains under federal investigation. Spruce Point sees a 30% to 45% long-term downside risk to Xylem's share price.
August 09, 2023 | 1:04 pm
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Spruce Point Capital Management has issued a strong sell opinion on Xylem Inc. due to concerns over its recent acquisition of Evoqua Water Technologies and potential accounting issues. The firm sees a 30% to 45% long-term downside risk to Xylem's share price.
The strong sell opinion issued by Spruce Point Capital Management is based on concerns over Xylem's recent acquisition of Evoqua Water Technologies, which the firm believes combines two troubled companies. Additionally, Spruce Point highlighted new accounting concerns and warned that Evoqua was previously charged for revenue fraud by the SEC and remains under federal investigation. These factors could negatively impact Xylem's share price in the short term.
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