Puneet Souda, an analyst from Leerink Partners, maintained the Buy rating on Waters (WAT – Research Report). The associated price target remains the same with $410.00.
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Puneet Souda’s rating is based on Waters’ strong position in the quality assurance and quality control (QA/QC) sector, which represents a significant portion of its pharmaceutical revenue. This defensive stance is largely resistant to issues such as funding challenges from the National Institutes of Health (NIH) or U.S. academic institutions. Despite a drop in shares due to stretched growth and earnings expectations, as well as a high valuation, the company’s alignment with key secular trends such as PFAS testing and drug patent expirations supports a positive outlook.
Waters’ management anticipates minimal impact from U.S. academic exposure, with growth expected to be driven by European academics and a stable outlook in China. The company’s robust pricing strategies are projected to contribute to earnings growth, with a notable increase in instrumentation sales driven by pharmaceutical and academic demand. Overall, the expectation of steady growth across various sectors, combined with Waters’ strategic positioning, substantiates the Buy rating.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $420.00 price target.