Agilent stock maintains Buy rating at TD Cowen on strong outlook

Investing.com - Agilent (NYSE:A) stock maintained its Buy rating at TD Cowen, which reiterated its $150.00 price target following meetings with company management. Currently trading at $128.48, the stock sits between analysts’ targets ranging from $120 to $165, with InvestingPro analysis suggesting the stock is trading above its Fair Value.

TD Cowen cited Agilent’s strong fiscal third-quarter performance, noting that the company’s positive momentum appears set to continue into the fourth quarter and fiscal 2026. The firm highlighted particularly encouraging outlooks for Agilent’s pharmaceutical business and its Chemical & Applied segment.

The research firm pointed to Agilent’s different market positioning in pharmaceuticals compared to peers, with strength in small molecule products and nucleic acid sample preparation. Meanwhile, the Chemical & Applied segment is benefiting from gas chromatography-mass spectrometry upgrades and semiconductor industry demand.

Project Ignite, described as a transformative business approach implemented by CEO Padraig McDonnell, was identified as a framework for the company’s strategy that may be "underappreciated" by investors. TD Cowen noted that while margins fell short in the third quarter, they are expected to expand going forward.

The firm also highlighted Agilent’s under-leveraged balance sheet, suggesting potential for mergers and acquisitions, which management has indicated is a key focus area. This assessment aligns with InvestingPro data showing the company operates with a moderate debt-to-equity ratio of 0.56 and maintains liquid assets exceeding short-term obligations with a current ratio of 2.25. For deeper insights into Agilent’s financial position and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Agilent Technologies reported its third-quarter earnings for 2025, surpassing revenue forecasts with a total of $1.74 billion, which exceeded the anticipated $1.67 billion. The company also met expectations with an earnings per share (EPS) of $1.37. TD Cowen maintained its Buy rating and a $150 price target on Agilent, highlighting the company’s strong revenue growth despite facing margin pressure. The firm noted that Agilent’s organic growth of 6.1% for the fiscal third quarter significantly outpaced the consensus expectation of 3.6%. KeyBanc reiterated its Sector Weight rating on Agilent, emphasizing the company’s balanced global performance and growth in pharmaceutical markets and its Chemical & Advanced Materials segment. Additionally, Bernstein SocGen Group maintained a Market Perform rating with a $125 price target, citing strong organic growth and continued market recovery. These developments indicate a positive trajectory for Agilent, as reflected in the consistent analyst confidence.

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