HSBC Starts Waters Corp. (WAT) at Buy

HSBC analyst Sidharth Sahoo initiates coverage on Waters Corp. (NYSE: WAT) with a Buy rating and a price target of $460.00.

The analyst comments: "We view Waters as a GARP (growth at a reasonable price) story. We expect mid-teens earnings growth aided by; 1) the equipment replacement cycle, 2) revenue and cost synergies from the pending Waters and Becton Dickinson (BD) deal, and 3) volume leverage leading to margin expansion in an already best-in-class margin profile. We argue that potentially lower interest rates along with continued deleveraging after deal completion could drive positive rerating of the stock. A rising share of recurring revenues, comprising precision chemistry consumables and services, provide a stable foundation for Waters' financial performance.

Waters stands at a transformative point with the pending USD17.5bn acquisition of BD's Biosciences and Diagnostic Solutions business, which is expected to close around the end of 1Q26, creating a diversified global leader in life sciences and diagnostics."

For an analyst ratings summary and ratings history on Waters Corp. click here. For more ratings news on Waters Corp. click here.

Shares of Waters Corp. closed at $390.90 yesterday.

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