Analyst Catherine Ramsey Schulte from Baird has increased the price target for Waters (WAT, Financial) to $374, up from the previous $355, while maintaining an Outperform rating. This adjustment comes in light of the company's robust first-quarter performance, with a stable outlook projected through 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Waters Corp (WAT, Financial) is $395.57 with a high estimate of $460.00 and a low estimate of $343.11. The average target implies an upside of 16.68% from the current price of $339.02. More detailed estimate data can be found on the Waters Corp (WAT) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Waters Corp's (WAT, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Waters Corp (WAT, Financial) in one year is $350.91, suggesting a upside of 3.51% from the current price of $339.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Waters Corp (WAT) Summary page.
WAT Key Business Developments
Release Date: May 06, 2025
- Revenue: $662 million, up 4% reported and 7% in constant currency.
- Instrument Sales Growth: 11%, driven by mid-teens growth in liquid chromatography and mass spectrometry.
- Pharma Sales Growth: 8%, with double-digit growth in Asia and the Americas.
- Industrial Sales Growth: 6%, led by PFAS applications growing over 90%.
- Academic and Government Sales Growth: 3%, with China growing double digits.
- Non-GAAP EPS: $2.25, reflecting low single-digit growth and high single-digit growth in constant currency.
- GAAP EPS: $2.03.
- Gross Margin: 58.2%.
- Adjusted Operating Margin: 25.5%.
- Free Cash Flow: $234 million, representing 35% of first quarter sales.
- Net Debt: Approximately $1.1 billion, with a net debt-to-EBITDA ratio of roughly 1 time.
- Full Year 2025 Sales Growth Guidance: Raised to 5% to 7% in constant currency.
- Full Year 2025 Adjusted EPS Guidance: Raised to $12.75 to $13.05, representing 8% to 10% growth.
- Second Quarter 2025 Sales Growth Guidance: 5% to 7% in constant currency.
- Second Quarter 2025 Non-GAAP EPS Guidance: $2.88 to $2.98, representing 10% to 13% reported growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Waters Corp (WAT, Financial) reported strong double-digit instrument growth, driven by mid-teens sales growth in both liquid chromatography and mass spectrometry.
- The company achieved a 7% sales growth in constant currency, landing at the high end of their guidance.
- Waters Corp (WAT) raised its full-year constant currency sales growth guidance to 5% to 7% due to better-than-expected first-quarter performance.
- The company successfully mitigated the impact of newly announced tariffs, limiting the net impact to a modest $10 million on their 2025 adjusted operating margin.
- Waters Corp (WAT) demonstrated strong free cash flow generation, allowing them to rapidly deleverage their balance sheet, reducing debt by approximately $170 million.
Negative Points
- The company faces a potential 50 basis point impact on their full-year growth outlook due to adjustments in the US academic and government end market.
- Despite strong performance, the US academic and government segment is expected to decline by 20% for the rest of the year.
- Waters Corp (WAT) has a $45 million gross exposure to tariffs, primarily affecting the second half of 2025.
- The company noted continued pressure on biotech, drug discovery, and pharma research segments, which are less than 20% of their overall pharma business.
- TA Instruments, a division of Waters Corp (WAT), experienced lower-than-expected growth, attributed to timing of different orders.
