Buy Rating Reaffirmed on Temporary Headwinds and Credible Turnaround Path Post-BD Acquisition

William Blair analyst Matt Larew has maintained their bullish stance on WAT stock, giving a Buy rating on February 12.

Matt Larew has given his Buy rating due to a combination of factors that emerged from his discussion with Waters’ management after the BD Biosciences and Diagnostics acquisition. He views the recent earnings shortfall and stock pullback as driven mainly by transient, operational disruptions—such as delayed China shipments, an unusually mild flu season, and one-time items—rather than structural problems in the acquired businesses.

He notes that when these temporary headwinds are stripped out, BD’s underlying sales were essentially flat and broadly consistent with Waters’ original growth expectations, with only the China DRG impact likely to linger into the first half of 2026. In his view, the company’s conservative guidance, combined with rapid deployment of Waters’ disciplined pricing, commercial accountability, and cost-rightsizing playbook, supports a credible path to improving performance and justifies a positive stance on the shares.

In another report released on February 12, TipRanks – Google also reiterated a Buy rating on the stock with a $361.00 price target.