In a report released on May 7, Matthew Sykes from Goldman Sachs maintained a Hold rating on Waters (WAT – Research Report), with a price target of $310.00.
Matthew Sykes has given his Hold rating due to a combination of factors including Waters Corporation’s (WAT) first quarter performance which aligned with revenue expectations but surpassed earnings per share (EPS) predictions. The company’s revenue experienced a decline, yet the reported adjusted EPS of $2.21 exceeded both the Visible Alpha Consensus and Goldman Sachs estimates. Moreover, Waters has reaffirmed its full-year guidance, projecting organic constant currency revenue growth and an EPS range that reflects cautious optimism.
The second-quarter guidance presented by Waters is somewhat conservative, falling below the expectations set by Goldman Sachs and consensus estimates, which introduces an element of uncertainty. Despite this, there are indicators of underlying demand strength, such as positive customer interactions and the anticipated need for laboratory instrument replacements, particularly in China. However, the reliance on a strong second-half performance to meet annual targets, amidst yet to be seen impacts from the liquid chromatography (LC) replacement cycle, contributes to the rationale behind Sykes’s Hold rating.
Sykes covers the Healthcare sector, focusing on stocks such as Bruker, Exact Sciences, and Pacific Biosciences. According to TipRanks, Sykes has an average return of -2.8% and a 48.44% success rate on recommended stocks.
In another report released on May 8, TD Cowen also maintained a Hold rating on the stock with a $358.00 price target.
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Waters (WAT) Company Description:
Waters Corp. is a measurement company, which engages in the analytical workflow solutions involving liquid chromatography, mass spectrometry and thermal analysis innovations. It operates through Waters and TA segments. The Waters segment designs, manufactures, distributes and services liquid chromatography and ultra performance liquid chromatography instruments, columns and other chemistry consumables that can be integrated and used along with other analytical instruments. The TA Instruments segment designs, manufactures, distributes and services thermal analysis, rheometry and calorimetry instruments. The company was founded by James Logan Waters in 1958 and is headquartered in Milford, MA.
