Waters (WAT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Patrick B Donnelly from Citi maintained a Hold rating on the stock and has a $390.00 price target.
Patrick B Donnelly has given his Hold rating due to a combination of factors related to Waters Corporation’s growth and margin expectations. The company has set a near-to-mid-term growth target of high single-digit percentages, which includes benefits from replacement cycles and pricing strategies. While these growth drivers are positive, the anticipated growth does not leave much room for upside, suggesting limited potential for significant stock appreciation in the near term.
Additionally, Waters has outlined a long-term margin expansion plan, aiming for a 35% adjusted operating margin by 2030. This plan includes a mix of volume leverage, pricing, and productivity improvements, offset by reinvestments. Although the margin expansion targets are ambitious, the offsetting factors and the current growth projections imply a balanced risk-reward scenario, justifying the Hold rating.
According to TipRanks, B Donnelly is a 2-star analyst with an average return of 0.5% and a 43.18% success rate. B Donnelly covers the Healthcare sector, focusing on stocks such as Illumina, Danaher, and Agilent.
In another report released today, Barclays also maintained a Hold rating on the stock with a $400.00 price target.
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