BofA update shows where active managers are putting money
Investing.com - Bernstein SocGen Group lowered its price target on Waters Corp . (NYSE:WAT) to $360.00 from $440.00 on Tuesday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $279.19, with analyst targets ranging from $300 to $465.
The firm cited Waters’ second-quarter 2025 results as "a bit lighter than expected," despite the company delivering high-single-digit growth in liquid chromatography and mass spectrometry (LC/MS). This growth was partially offset by unexpected softness in thermal analysis (TA) and Wyatt product lines. InvestingPro reveals the company maintains a solid revenue growth of 5.89% over the last twelve months, though 5 analysts have recently revised their earnings expectations downward.
Gross margin improvements were modest, increasing just 10 basis points sequentially from the first quarter. The research firm attributed this primarily to tariff-related headwinds, with Waters absorbing approximately 66 basis points of margin impact from manufacturing relocation efforts. InvestingPro data shows the company maintains a healthy gross profit margin of 59.02%, with an overall financial health score rated as "GOOD."
Despite these challenges, Waters maintained high-single-digit constant currency growth both for the quarter and year-to-date, outpacing industry peers. The company also raised its guidance, which Bernstein SocGen viewed as "a welcomed signal of confidence in continued company momentum."
Waters stock currently trades at approximately 16 times EV/EBITDA, compared to 18+ multiples for peers like TMO, DHR, MTD, and TECH, according to the research note.
In other recent news, Waters Corporation reported its second-quarter 2025 earnings, with earnings per share (EPS) of $2.95, slightly surpassing the forecast of $2.94. The company also exceeded revenue expectations, reporting $771 million compared to the anticipated $748.04 million. Despite these positive earnings and revenue results, the stock experienced a minor dip in premarket trading, reflecting a cautious market reaction. Jefferies recently lowered its price target for Waters to $385 from $435 while maintaining a Buy rating, noting the company’s revenue was 3% above expectations and EPS was 2% higher than anticipated. Additionally, TD Cowen adjusted its price target for Waters to $322 from $333, maintaining a Hold rating. TD Cowen highlighted modest beats in organic revenue growth of 8% and EPS growth of 12%, which were largely in line with expectations. These developments indicate that while Waters has demonstrated solid financial performance, analysts have adjusted their outlooks on the company’s stock.
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