Waters stock price target raised to $465 from $450 at Scotiabank

Investing.com - Scotiabank (TSX:BNS) has raised its price target on Waters Corp . (NYSE:WAT) to $465.00 from $450.00 while maintaining a Sector Outperform rating. Currently trading at $353.79, Waters commands a market capitalization of $20.9 billion. According to InvestingPro data, analyst targets range from $350 to $460, with the stock currently trading at a premium to its Fair Value.

The price target increase reflects Scotiabank’s view that Waters is among the most favorably positioned companies in its sector to deliver outsized growth in 2025 and 2026.

Scotiabank cited several factors supporting its outlook, including Waters’ instrument replacement cycle timing, significant exposure to later-stage development and commercial stage spending in the pharmaceutical and biotech industries, and minimal exposure (approximately 3%) to the U.S. A&G market.

The firm noted that Waters has the second-highest revenue growth expectation among its peer group this year, behind only Repligen (NASDAQ:RGEN), and the highest EPS growth expectation in the group.

Scotiabank also expressed optimism about Waters’ transformation under its current management team over the past five years, highlighting improved product innovation alignment, enhanced software capabilities, operational excellence initiatives, and early capitalization on growth opportunities in areas such as India generics, GLP-1 testing, biologics, PFAS testing, and clinical LC-MS.

In other recent news, Waters Corporation reported a strong first quarter for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $2.25, compared to the forecasted $2.22, and revenue of $662 million, exceeding the projected $655.33 million. The company also raised its full-year EPS guidance, anticipating 8-10% growth. Additionally, Waters launched the Alliance iS HPLC System Software (ETR:SOWGn) version 2.0, which includes user authentication capabilities aimed at enhancing data security and traceability in pharmaceutical laboratories. On the merger front, Waters acquired Halo Labs, enhancing its presence in the biologics sector, which represents about 20% of its revenue. Analyst firms have shown mixed reactions, with Bernstein SocGen maintaining an Outperform rating, citing Waters’ strategic expansion into electric vehicle battery testing, while UBS maintained a Neutral rating with a $360 price target, acknowledging Waters’ growth potential. KeyBanc reiterated an Overweight rating, highlighting the company’s focus on pharmaceutical and biotech manufacturing. Waters’ expansion into battery testing and the launch of new chromatography columns are seen as strategic moves to capture growth in high-demand markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.