Analyst Daniel Brennan from TD Cowen maintained a Hold rating on Waters and decreased the price target to $322.00 from $375.00.
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Daniel Brennan has given his Hold rating due to a combination of factors, including Waters’ recent financial performance and strategic developments. The company reported modest beats in organic revenue and earnings per share, which, while positive, were largely anticipated by the market. The lack of acceleration in instrument sales was a focal point, as these are crucial for the company’s growth prospects.
Furthermore, the recent merger with BDX presents both opportunities and challenges. While the potential synergies from this deal are promising, the market may take time to fully appreciate them, especially given Waters’ historical focus on organic growth and the current uncertain macroeconomic environment. Additionally, the company’s margins have been impacted by manufacturing costs and tariffs, and while there are positive signs from China, other regions show mixed growth. These factors contribute to a cautious outlook, justifying the Hold rating.
According to TipRanks, Brennan is a 4-star analyst with an average return of 9.0% and a 45.17% success rate. Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Thermo Fisher, and Waters.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $330.00 price target.