Key Takeaways:
- The merger between Waters (WAT, Financial) and BD's Biosciences & Diagnostic Solutions is valued at $17.5 billion.
- The combined business forecasts $6.5 billion in revenue and $2.0 billion in adjusted EBITDA by 2025.
- Wall Street analysts suggest an optimistic outlook with a potential 12.07% upside in WAT's stock price.
Strategic Merger Overview
In an ambitious move, Waters Corp (WAT) plans to merge with BD's Biosciences & Diagnostic Solutions via a $17.5 billion deal structured as a Reverse Morris Trust. This merger is poised to create a robust entity that expects to generate $6.5 billion in revenue and achieve $2.0 billion in adjusted EBITDA by the year 2025. Investors can anticipate cost synergies reaching $200 million by the third year post-merger, alongside a revenue synergy target of $290 million by the fifth year. This strategic alignment aims to bolster Waters' market position and operational efficiencies.
Wall Street Analysts Forecast
Analysts have provided one-year price targets for Waters Corp (WAT, Financial), with an average target of $395.50. The high estimate stands at $465.00, while the low estimate is $360.00. These projections suggest a potential upside of 12.07% from the current trading price of $352.91. For more detailed forecasts and analyst estimates, please visit the Waters Corp (WAT) Forecast page.
The consensus among 22 brokerage firms reflects a promising outlook, with an average brokerage recommendation of 2.4, classifying Waters Corp as "Outperform". This rating is based on a scale where 1 indicates a Strong Buy and 5 signifies a Sell recommendation, demonstrating a positive market sentiment towards Waters' strategic prospects.
According to GuruFocus estimates, the one-year GF Value for Waters Corp is predicted to be $356.42, indicating a modest upside potential of 0.99% from the current price level. The GF Value reflects an estimation of the stock's fair value, derived from historical trading multiples, past business growth, and future performance projections. For in-depth analysis, investors should refer to the Waters Corp (WAT, Financial) Summary page.
