Agilent Technologies: Balanced Outlook with Hold Rating Amid Mixed Financial Signals

Analyst Michael Ryskin from Bank of America Securities reiterated a Hold rating on Agilent and increased the price target to $165.00 from $130.00.

Michael Ryskin has given his Hold rating due to a combination of factors including Agilent’s recent financial performance and future guidance. The company reported a solid fourth-quarter performance with sales exceeding expectations and core growth across all segments. However, the adjusted operating margin was slightly below market estimates, and the adjusted EPS was in line with expectations, which may not be compelling enough to warrant a more bullish rating.
Additionally, Agilent’s FY26 guidance indicates strong revenue and margin expectations, but the EPS guidance fell short due to an unexpected increase in the tax rate. While management’s outlook on end markets, particularly in pharma and biotech, is positive, and there are potential upsides from initiatives like reshoring, the conservative guidance and tax rate hike temper the overall outlook. These mixed signals contribute to the decision to maintain a Hold rating, reflecting a balanced view of potential risks and opportunities.