Friday, Bernstein analysts upgraded Waters Corporation (NYSE:WAT) stock rating from Market Perform to Outperform, setting a price target of $430.00. The research firm anticipates approximately a 15% upside to the current trading price of $374.20.
According to InvestingPro data, the stock is trading near its 52-week high, with a notable 29.8% gain over the past six months. The upgrade is based on the belief that the market has not yet fully accounted for the company's replacement cycle.
The analysts at Bernstein pointed out that the replacement cycle, a period during which a company's products are expected to be replaced, has not been completely reflected in Waters Corp .'s stock price. They suggest that this oversight presents an opportunity for investors as the cycle progresses.
Waters Corporation, which specializes in analytical instruments for the scientific community, is seen to have improved its long-term prospects. With a market capitalization of $22.2 billion and annual revenue of $2.9 billion, the company maintains a GOOD financial health score according to InvestingPro analysis. According to Bernstein, these improvements are significant when compared to the company's position before the pandemic.
The positive outlook is further bolstered by the view that Waters Corp. has a solid foundation for growth. The analysts' revised price target suggests confidence in the company's future performance and its ability to surpass previous expectations.
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