Waters (WAT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Ryskin from Bank of America Securities maintained a Hold rating on the stock and has a $410.00 price target.
Michael Ryskin has given his Hold rating due to a combination of factors that balance Waters’ promising growth prospects with certain risks and uncertainties. The company has presented an optimistic growth outlook, with expectations of high single-digit topline growth driven by various idiosyncratic factors such as India generics and PFAS testing. However, Ryskin notes that these projections might represent a base case, potentially underestimating challenges like patent expirations and regulatory uncertainties.
Despite the positive growth narrative, Ryskin remains cautious due to the premium valuation of Waters’ stock, which limits the potential for significant upside. Furthermore, while Waters has outlined a solid plan for margin expansion, achieving a 35% operating margin by 2030, there are concerns about the pace of growth in certain markets and the impact of external factors such as tariffs. Consequently, the Hold rating reflects a balanced view of the company’s growth opportunities against the backdrop of these risks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $400.00 price target.