Waters deal adds variables to ‘clean’ story, says Jefferies

Jefferies expects shares of Waters (WAT) to trade down on the combination with Beckton Dickinson (BDX) via a reverse merger trust due to the deal size and “variables added to a clean replacement cycle story.” However, longer term, Jefferies likes the merits of the deal, saying it creates real scale, which has proven effective in the space. It keeps a Buy rating on Waters, which is trading down 13% to $306.92 in morning trading.