In a report released today, Daniel Brennan from TD Cowen maintained a Buy rating on Agilent, with a price target of $170.00.
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Daniel Brennan has given his Buy rating due to a combination of factors, primarily driven by Agilent’s impressive organic growth and strategic positioning. The company reported a robust 7.2% organic growth in the fourth quarter, surpassing the consensus estimate of 5.3%. This growth was broad-based, with the pharmaceutical sector playing a key role, showcasing a 12% increase. Despite a slight miss in EBIT margins due to increased compensation investments, the overall outlook remains positive.
Furthermore, Agilent’s forward-looking guidance appears conservative, with expectations of continued organic growth between 4-6% and improved operational leverage. The company’s strong financial performance and potential for capital deployment, given its under-levered balance sheet, also contribute to the positive outlook. These factors, combined with a favorable revenue mix and strategic growth drivers, underpin Brennan’s decision to raise the price target to $170 and maintain a Buy rating.
Brennan covers the Healthcare sector, focusing on stocks such as Exact Sciences, Agilent, and Bruker. According to TipRanks, Brennan has an average return of 21.7% and a 56.46% success rate on recommended stocks.
In another report released today, Citi also maintained a Buy rating on the stock with a $185.00 price target.