WAT: Deutsche Bank Lowers Price Target to $315, Maintains Hold Rating

Deutsche Bank analyst Justin Bowers has maintained a "Hold" rating for Waters Corp (WAT) while lowering the price target from $375 to $315, a 16% decrease. The rating reflects the current assessment of WAT's performance in the market. The average target price for WAT is $373.75 with a high estimate of $465 and a low estimate of $315, indicating a 32.25% upside from the current price. The estimated GF Value for WAT in one year is $358.30, suggesting a 26.78% upside from the current price.

Deutsche Bank analyst Justin Bowers has maintained a "Hold" rating for Waters Corp (WAT) while lowering the price target from $375 to $315, a 16% decrease. The rating reflects the current assessment of WAT's performance in the market. The average target price for WAT is $373.75 with a high estimate of $465 and a low estimate of $315, indicating a 32.25% upside from the current price. The estimated GF Value for WAT in one year is $358.30, suggesting a 26.78% upside from the current price.

The downgrade comes amidst mixed financial performance for the company. In its latest earnings report, Waters Corp reported strong sales growth of 9% as reported and 8% in constant currency, exceeding the high end of its guidance. Non-GAAP earnings per share increased by 12% year-on-year to $2.95, surpassing the midpoint of its guidance. The company experienced significant growth in its LC and mass spec portfolio, with instruments growing mid-single digits and recurring revenue up 11%. However, the company faced challenges in its TA division and academic and government segments, which underperformed, leading to a decline in sales. Additionally, the operating tax rate presented a $0.05 headwind to adjusted EPS due to jurisdictional mix and discrete items specific to the quarter. The company faced margin dilution from tariff surcharges, impacting the gross margin for the quarter.

Despite these challenges, Waters Corp raised its full-year 2025 constant currency sales growth guidance to 5.5% to 7.5% and increased its non-GAAP EPS guidance to $12.95 to $13.05. The company is successfully expanding into high-growth areas, with GLP testing revenue growing 70% year-over-year and PFAS testing revenue increasing over 50% year-over-year. However, the TA business in the Americas declined by 20% due to macroeconomic conditions and tariff challenges affecting material science and polymers customers.

The downgrade by Deutsche Bank highlights the mixed performance of the company, with strong growth in certain segments offset by underperformance in others. The company's ability to navigate these challenges and achieve its growth targets will be crucial in determining its future performance.

References:
[1] https://finance.yahoo.com/news/waters-corp-wat-q2-2025-070941095.html
[2] https://site.financialmodelingprep.com/market-news/viasat-vsat-downgraded-deutsche-bank-mixed-financial-performance