Waters (NYSE:WAT) Lowered to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Waters to “Hold” from “Buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $424.35.
• Waters exceeded quarterly expectations, reporting $3.05 in EPS versus $3.01 expected and $1.65 billion in revenue versus $1.62 billion forecast; management maintained 2026 EPS guidance of $14.45–$14.65.
• The stock trades at an elevated valuation of roughly 102 times earnings, leaving it vulnerable to volatility if demand, margins, or guidance weaken despite recent earnings momentum.

Waters (NYSE:WAT - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday, Wall Street Zen reports.

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group boosted their price target on shares of Waters from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Stifel Nicolaus set a $420.00 target price on Waters in a report on Wednesday, August 5th. Morgan Stanley set a $430.00 target price on Waters in a research note on Wednesday, August 5th. Guggenheim restated a "buy" rating and set a $440.00 price target on shares of Waters in a report on Wednesday, July 8th. Finally, Bank of America lifted their price objective on Waters from $370.00 to $400.00 and gave the company a "neutral" rating in a research note on Tuesday, June 2nd. Three equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Waters presently has a consensus rating of "Moderate Buy" and an average target price of $424.35.

Waters Stock Down 1.0%

Shares of WAT opened at $409.39 on Friday. The company's 50-day simple moving average is $391.93 and its 200-day simple moving average is $351.45. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.29 and a current ratio of 1.86. Waters has a 1 year low of $282.77 and a 1 year high of $426.22. The stock has a market capitalization of $40.22 billion, a PE ratio of 102.09, a P/E/G ratio of 2.38 and a beta of 1.19.

Waters (NYSE:WAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The medical instruments supplier reported $3.05 earnings per share for the quarter, beating analysts' consensus estimates of $3.01 by $0.04. Waters had a net margin of 3.58% and a return on equity of 11.27%. The firm had revenue of $1.65 billion during the quarter, compared to analysts' expectations of $1.62 billion. During the same quarter in the previous year, the business posted $2.95 earnings per share. The business's quarterly revenue was up 113.3% compared to the same quarter last year. Waters has set its Q3 2026 guidance at 3.950-4.050 EPS and its FY 2026 guidance at 14.450-14.650 EPS. Analysts forecast that Waters will post 14.56 earnings per share for the current fiscal year.

Insider Activity at Waters

In other news, Director Christopher Kuebler sold 3,626 shares of the firm's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $397.94, for a total transaction of $1,442,930.44. Following the sale, the director owned 17,808 shares of the company's stock, valued at approximately $7,086,515.52. This trade represents a 16.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.31% of the company's stock.

Institutional Trading of Waters

Institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System grew its position in shares of Waters by 35,116.4% in the 2nd quarter. California State Teachers Retirement System now owns 54,254,036 shares of the medical instruments supplier's stock valued at $20,347,434,000 after buying an additional 54,099,977 shares during the last quarter. Pilgrim Global Advisors LLC acquired a new position in Waters in the second quarter valued at $466,131,171,000. BlackRock Inc. acquired a new position in Waters in the second quarter valued at $3,182,191,000. Jupiter Topco LLC purchased a new position in shares of Waters during the second quarter worth about $623,921,000. Finally, Norges Bank purchased a new position in shares of Waters during the fourth quarter worth about $265,751,000. Hedge funds and other institutional investors own 94.01% of the company's stock.

Key Waters News

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Shares are up 3.1% since the company’s most recent earnings report, reflecting investor confidence after Waters exceeded quarterly expectations with adjusted EPS of $3.05 versus the $3.01 consensus and revenue of $1.65 billion versus $1.62 billion expected. Why Is Waters Up Since Last Earnings Report?
• Positive Sentiment: Analysts currently assign Waters a consensus recommendation of “Moderate Buy,” providing continued support for the stock. The company also maintained 2026 earnings guidance of $14.45 to $14.65 per share. Waters Given Moderate Buy Recommendation
• Neutral Sentiment: Waters’ latest results included strong reported year-over-year revenue growth and an earnings beat, but investors may focus on whether that momentum is sustainable and whether the company can deliver its full-year outlook.
• Negative Sentiment: The stock trades at a very elevated valuation—approximately 102 times earnings—so expectations are high. Any weaker-than-expected demand, guidance revision, or margin pressure could produce volatility despite the positive analyst consensus.

About Waters

Waters Corporation is a global provider of analytical instruments, software and services for laboratory and research applications. The company designs, manufactures and sells technologies centered on liquid chromatography, mass spectrometry, separation science, and related sample preparation and detection systems. Its product portfolio includes chromatographs, mass spectrometers, columns and consumables, laboratory informatics and workflow software, as well as technical support and training services that help customers run and interpret complex analyses.

Waters serves a wide range of end markets that include pharmaceutical and biotechnology companies, contract research and testing laboratories, academic and government research institutions, clinical diagnostics, food and environmental testing, and industrial and chemical manufacturers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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