Waters stock price target lowered to $330 from $375 at BofA Securities

Investing.com - BofA Securities has lowered its price target on Waters Corp . (NYSE:WAT) to $330.00 from $375.00 while maintaining a Neutral rating on the stock. The $18.1 billion market cap company, which currently trades at a P/E ratio of 28x, is currently fairly valued according to InvestingPro analysis.

The price target reduction follows a sharp decline in Waters shares on Tuesday, which fell 14% while the S&P 500 remained flat.

BofA analyst Derik de Bruin cited concerns about the valuation of Waters’ transaction with Becton Dickinson (NYSE:BDX), noting that "19x for BDX seems rich," along with questions about timing and the quality of the BDX asset relative to Waters.

The new price target is based on 17x BofA’s pro-forma FY26 EV/EBITDA estimate, reduced from the previous 19x multiple, reflecting "the lower growth / margins of the NewCo."

BofA maintained its Neutral rating on Waters, pointing to the company’s "premium valuation / soft market fundamentals" as reasons for caution.

In other recent news, Waters Corporation announced a $17.5 billion merger with Becton Dickinson’s Biosciences & Diagnostic Solutions business. This transaction is expected to double Waters’ total addressable market and is projected to be accretive to its adjusted earnings per share in the first year. The merger is anticipated to close in the first quarter of 2026, with Waters’ CEO Udit Batra leading the combined company. Additionally, Scotiabank (TSX:BNS) raised its price target for Waters to $465, maintaining a Sector Outperform rating, citing the company’s favorable positioning for growth in the coming years. Bernstein SocGen Group reiterated an Outperform rating with a $400 price target, highlighting Waters’ strategic expansion into electric vehicle battery testing as a significant growth opportunity. Furthermore, Waters launched an enhanced version of its Alliance iS HPLC System Software (ETR:SOWGn), featuring user authentication capabilities to improve data security in pharmaceutical laboratories. KeyBanc analysts reiterated an Overweight rating for Waters, emphasizing the company’s strategic focus on pharmaceutical and biotech manufacturing. Waters’ recent acquisition of Halo Labs and the launch of affinity chromatography columns are expected to support its growth in the biologics sector.

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