Waters stock price target reiterated at $400 on EV battery testing growth

Published 20/06/2025, 16:32
Waters stock price target reiterated at $400 on EV battery testing growth

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $400.00 price target on Waters Corp . (NYSE:WAT), currently trading at $342.76 with a market cap of $20.3 billion. The rating reflects the company’s strategic expansion into electric vehicle battery testing. According to InvestingPro data, analyst targets range from $350 to $460, with 13 analysts recently revising their earnings estimates upward.

The research firm highlighted that industrial and applied markets represent 31% of Waters’ revenue, with battery testing emerging as a significant growth opportunity within this segment. Waters’ TA portfolio offers key technologies for battery research and development, including Thermogravimetric Analysis and Differential Scanning Calorimetry, which are critical for battery material characterization and safety testing. The company’s strong financial position is evidenced by its "GOOD" InvestingPro Financial Health score, with robust gross margins of 59% and sufficient cash flows to cover debt obligations.

Bernstein SocGen noted that Waters expects double-digit growth in battery R&D, a projection the firm considers reasonable despite requiring some bullish assumptions. This growth trajectory represents a strategic pivot for Waters from low-single-digit growth markets like oil and gas toward higher-growth opportunities in EV battery testing.

The research firm emphasized that life science tools play a fundamental role in understanding material behavior, which determines battery performance, safety, and cost. These capabilities position Waters to capitalize on the ongoing electric revolution as battery development accelerates globally.

Waters’ expansion into battery testing is viewed by Bernstein SocGen as "strategically sound and accretive" toward high-single-digit growth for the company, supporting the maintained Outperform rating and price target.

In other recent news, Waters Corporation reported its first-quarter earnings for 2025, surpassing expectations with an earnings per share of $2.25, above the projected $2.22. The company also exceeded revenue forecasts, reporting $662 million compared to the expected $655.33 million. Waters Corporation has raised its full-year EPS guidance, anticipating growth between 8-10%. In a strategic move, Waters recently acquired Halo Labs to strengthen its position in the biologics sector, contributing to an estimated annual growth of 40 basis points. KeyBanc analysts reiterated an Overweight rating for Waters, maintaining a price target of $460, while UBS analysts maintained a Neutral rating with a $360 price target, citing positive growth drivers. Additionally, Waters launched the Alliance iS HPLC System Software (ETR:SOWGn) version 2.0, featuring user authentication to enhance data security for pharmaceutical laboratories. These developments reflect Waters Corporation’s ongoing efforts to innovate and expand its market presence.

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