Waters (NYSE:WAT) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Waters from a “buy” to a “hold,” adding to a mixed analyst outlook on the stock.
• Despite the downgrade, the broader analyst consensus remains fairly positive, with Waters holding an average rating of “Moderate Buy” and a consensus price target of $401.60.
• Waters recently posted better-than-expected earnings, reporting $2.70 EPS versus the $2.31 estimate and $1.27 billion in revenue versus $1.20 billion expected; the company also raised guidance for fiscal 2026.

Waters (NYSE:WAT - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Monday.

A number of other brokerages have also weighed in on WAT. Sanford C. Bernstein started coverage on Waters in a research note on Friday, June 26th. They issued an "outperform" rating and a $435.00 target price for the company. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $350.00 price target on shares of Waters in a research report on Thursday, May 7th. TD Cowen restated a "hold" rating on shares of Waters in a research report on Wednesday. Wells Fargo & Company boosted their target price on shares of Waters from $355.00 to $370.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 14th. Finally, Royal Bank Of Canada initiated coverage on shares of Waters in a research report on Wednesday, July 8th. They set an "outperform" rating and a $435.00 target price on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, Waters has an average rating of "Moderate Buy" and a consensus price target of $401.60.

Waters Stock Performance

NYSE WAT opened at $368.82 on Monday. Waters has a 1-year low of $275.05 and a 1-year high of $414.15. The company has a 50 day moving average of $362.09 and a 200-day moving average of $346.27. The company has a current ratio of 1.79, a quick ratio of 1.13 and a debt-to-equity ratio of 0.32. The firm has a market cap of $36.21 billion, a price-to-earnings ratio of 46.86, a PEG ratio of 2.23 and a beta of 1.20.

Waters (NYSE:WAT - Get Free Report) last announced its earnings results on Tuesday, May 5th. The medical instruments supplier reported $2.70 EPS for the quarter, topping the consensus estimate of $2.31 by $0.39. Waters had a return on equity of 15.60% and a net margin of 11.91%.The business had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the previous year, the business earned $2.25 EPS. Waters's revenue was up 91.4% compared to the same quarter last year. Waters has set its Q2 2026 guidance at 2.950-3.050 EPS and its FY 2026 guidance at 14.400-14.600 EPS. On average, equities analysts forecast that Waters will post 14.51 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Waters

Several institutional investors have recently modified their holdings of the business. Brighton Jones LLC increased its holdings in Waters by 112.9% during the fourth quarter. Brighton Jones LLC now owns 1,269 shares of the medical instruments supplier's stock worth $471,000 after buying an additional 673 shares during the last quarter. Integrated Wealth Concepts LLC grew its position in shares of Waters by 2.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,048 shares of the medical instruments supplier's stock valued at $386,000 after acquiring an additional 30 shares during the period. Goldman Sachs Group Inc. grew its position in shares of Waters by 3.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 200,051 shares of the medical instruments supplier's stock valued at $73,733,000 after acquiring an additional 6,976 shares during the period. Empowered Funds LLC increased its stake in shares of Waters by 16.6% during the 1st quarter. Empowered Funds LLC now owns 1,126 shares of the medical instruments supplier's stock worth $415,000 after purchasing an additional 160 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in shares of Waters during the 2nd quarter worth about $232,000. Institutional investors and hedge funds own 94.01% of the company's stock.

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.

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