UBS downgrades Agilent on China and instrument headwinds

UBS analyst Dan Leonard last night downgraded Agilent Technologies to Neutral from Buy with a price target of $125, down from $163. The analyst says the company’s over-exposure to regional headwinds in China, instrument demand normalization, and softening cyclical spend could pressure forecasts. China pharma trends remain weak and are unlikely to improve until the second half of 2024, the analyst tells investors in a research note. The firm expects Agilent’s instrument heavy sales mix to be susceptible to demand normalization and budget tightening.