JPMorgan cuts Agilent stock price target to $155 from $160

On Thursday, JPMorgan analyst Tycho Peterson adjusted the price target on Agilent Technologies Inc. (NYSE:A) shares to $155 from the previous $160, while retaining an Overweight rating. With a current market capitalization of $31.61 billion and trading at a P/E ratio of 25.47, InvestingPro analysis suggests the stock is currently undervalued. The revision follows Agilent’s second-quarter fiscal year 2025 earnings release, where the company reported revenue and earnings per share (EPS) that surpassed both the Street’s expectations and the company’s own guidance.

Agilent announced F2Q25 revenues of $1.67 billion, exceeding the Street’s forecast of $1.63 billion and the guided range of $1.61 to $1.65 billion. This represented a core growth of 5.3%, which is higher than the anticipated 3.7% and the guided 2.5% to 5.0%. Adjusted EPS came in at $1.31, topping the Street’s estimate of $1.26 and guidance of $1.25 to $1.28. The company observed robust instrument bookings to billings (B2B) ratios, growth across all regions, including a 10% year-over-year increase in China, and expansion in all end-markets except for Agro & Genomics (A&G), which saw a 2% decline.

Despite some pullforward of approximately $15 million into the second quarter from the third quarter in the lab consumables segment, Agilent faced delays due to longer customs processing times for instruments. However, management noted growth in liquid chromatography (LC) and LC/mass spectrometry (MS) instruments, with LC growing at a high single-digit rate, even after accounting for the delays.

Looking ahead, Agilent raised its full-year reported revenue guidance to $6.73 to $6.81 billion, reflecting a lighter foreign exchange headwind, while maintaining its core revenue growth projection of 2.5% to 3.5%. The company’s adjusted EPS guidance remains unchanged at $5.54 to $5.61 for the year. For the third quarter of fiscal year 2025, Agilent expects revenue between $1.65 and $1.68 billion and adjusted EPS of $1.35 to $1.37.

In regards to tariffs, Agilent anticipates a gross exposure of $50 million in the second half of the fiscal year, in addition to the approximately $10 million impact absorbed in the first half. Management is confident in mitigating the majority of this impact in 2025 and fully offsetting it by 2026 through actions enabled by the Ignite transformation initiative.

The report concluded with a positive outlook on Agilent’s performance, highlighting the company’s strong quarter, consistent B2B, pharmaceutical sector strength, and China market growth despite a challenging macroeconomic environment. Management’s cost control measures through the Ignite transformation were also commended. InvestingPro data reveals the company maintains a solid financial foundation with moderate debt levels and sufficient cash flows to cover interest payments. For deeper insights into Agilent’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 6 additional ProTips and extensive financial metrics.

In other recent news, Agilent Technologies reported impressive financial results for the second quarter of 2025. The company announced earnings per share (EPS) of $1.31, which exceeded analyst expectations of $1.27. Revenue for the quarter reached $1.67 billion, surpassing the anticipated $1.63 billion, marking a 6% year-over-year increase. Agilent maintained its full-year EPS guidance of $5.54 to $5.61, reflecting confidence in its financial outlook despite potential macroeconomic challenges.

Additionally, Agilent’s performance was bolstered by strong growth in China, where revenue increased by 10%. The company also noted robust demand in pharmaceuticals, diagnostics, and environmental markets. Agilent’s CEO, Porek McDonald, highlighted the company’s Ignite transformation program as a key driver of operational efficiency and growth. The company has also been proactive in mitigating tariff impacts, with plans to fully address these by 2026.

Agilent’s strategic initiatives include ongoing product innovation, with new launches in liquid chromatography and cell analysis. The company expressed optimism about the long-term growth prospects for PFAS testing, which grew more than 70% year-over-year globally. These developments underscore Agilent’s strategic positioning and its ability to navigate a dynamic market environment.

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