Wedbush cautious on Xylem after CEO resignation

|By:, SA News Editor

Wedbush is skeptical about Xylem's (XYL +2.1%) executive shakeup.

"Today's announcement that President and CEO Gretchen McClain has stepped down suggests the road ahead may be more challenging than we had anticipated," analyst David Rose says.

Rose calls the shares' performance since the ITT spinoff "lackluster" and notes that given the company's recent earnings report (Q2 adjusted EPS -26% Y/Y, negative organic revenue growth, disappointing guidance), "the case had not been made that a turnaround [is] imminent."

Neutral rating maintained, price target $27.