As previously reported, Jefferies analyst Saree Boroditsky downgraded Xylem to Hold from Buy. Xylem's dewatering business makes up only 10% of sales, but she estimates it accounts for closer to 25% of EBITDA, and this business started to soften in Q3, Boroditsky tells investors. If the total dewatering business declines 5% in 2020, and the remaining Water Infrastructure segment grows 3%, she expects total segment margins to be down slightly for the year, while consensus is calling for improvement, Boroditsky added. The analyst, who expects negative earnings revisions into 2020, lowered her price target on Xylem shares to $70 from $90.