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On Thursday, Leerink Partners analysts updated their outlook on Agilent Technologies Inc. (NYSE:A), increasing the price target to $135 from $125 while maintaining an Outperform rating. The positive adjustment follows Agilent’s reported earnings, which surpassed expectations with a 5% core growth compared to the 3% consensus. With a market capitalization of $31.6 billion and a solid financial health score of "GOOD" according to InvestingPro, the company maintains strong fundamentals. The company also confirmed its previous guidance, which analysts considered cautious but appropriate.
Agilent’s performance was bolstered by robust growth across its core business lines, despite challenging macroeconomic conditions. The company’s strong operational efficiency is reflected in its impressive 54% gross profit margin and healthy current ratio of 2.2. Notably, the company’s PFAS-related business saw an impressive 75% growth. Additionally, significant expansions were observed in CDMOs, pathology services, and other areas, with Biovectra experiencing high-teen growth rates and pathology services seeing high single-digit increases. The uptake of Agilent’s liquid chromatography-mass spectrometry (LC-MS) products also showed mid-single-digit growth, signaling a strong replacement cycle driven by the latest LC upgrades. InvestingPro analysis reveals 8 additional key insights about Agilent’s financial strength and market position.
The company’s Ignite framework, aimed at reducing the impact of tariffs, is gaining traction and contributing to cost savings and pricing benefits. This initiative has been particularly effective in mitigating most tariff impacts. However, Agilent’s operations in China experienced a $15 million consumable pull-forward due to a customs issue with instruments, which management anticipates will reverse in the next quarter.
The analyst’s remarks also highlighted the potential additional lift for Agilent’s shares following the US Court of International Trade’s recent decision, which deemed certain tariffs illegal. This development could further support the company’s financial position and stock performance.
Agilent’s diverse positioning across multiple end-markets remains attractive to analysts, prompting the continued Outperform rating and the raised price target. The company is expected to maintain its strong trajectory, backed by its broad portfolio and strategic initiatives.
In other recent news, Agilent Technologies reported a strong second quarter for fiscal year 2025, with earnings per share (EPS) of $1.31, exceeding analyst expectations of $1.27. The company’s revenue reached $1.67 billion, surpassing the anticipated $1.63 billion, marking a 6% year-over-year growth. Following these results, JPMorgan adjusted Agilent’s stock price target to $155, maintaining an Overweight rating, while Jefferies raised its target to $120, keeping a Hold rating. Agilent’s robust performance was driven by a 10% revenue growth in China and strong demand in the pharmaceutical sector, despite a 2% decline in the Agro & Genomics market.
Agilent maintained its full-year EPS guidance of $5.54 to $5.61 and increased its full-year reported revenue guidance to $6.73 to $6.81 billion. The company anticipates mitigating the impact of tariffs, with a gross exposure of $50 million expected in the second half of the fiscal year. Management is confident in offsetting these costs through the Ignite transformation initiative by 2026. The earnings call highlighted Agilent’s strategic focus on innovation, with new product launches in liquid chromatography and cell analysis, and a positive outlook on the company’s performance despite macroeconomic challenges.
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