Waters (NYSE:WAT) Raised to "Moderate Buy" at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded Waters to a “moderate buy”, adding to a generally positive analyst backdrop for the stock. MarketBeat data shows a consensus rating of Moderate Buy with an average target price of $403.60.
• Waters reported better-than-expected earnings for the latest quarter, with EPS of $2.70 versus estimates of $2.31 and revenue of $1.27 billion versus expectations of $1.20 billion. The company also issued upbeat guidance for Q2 2026 and FY 2026.
• The stock was trading at $377.42, near the high end of its 52-week range of $275.05 to $414.15. Waters also has a strong institutional presence, with 94.01% of shares held by institutional investors and hedge funds.

Waters (NYSE:WAT - Get Free Report) was upgraded by research analysts at Royal Bank Of Canada to a "moderate buy" rating in a note issued to investors on Wednesday,Zacks.com reports.

WAT has been the topic of a number of other research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Waters in a research note on Monday, April 20th. Morgan Stanley boosted their target price on shares of Waters from $350.00 to $390.00 and gave the company an "equal weight" rating in a research note on Thursday. TD Cowen increased their price target on shares of Waters from $345.00 to $385.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. Sanford C. Bernstein assumed coverage on shares of Waters in a research report on Friday, June 26th. They set an "outperform" rating and a $435.00 price target on the stock. Finally, Wells Fargo & Company raised their price target on shares of Waters from $355.00 to $370.00 and gave the company an "equal weight" rating in a research report on Thursday, May 14th. Four equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $403.60.

Waters Stock Performance

Shares of WAT stock opened at $377.42 on Wednesday. Waters has a 52-week low of $275.05 and a 52-week high of $414.15. The company has a quick ratio of 1.13, a current ratio of 1.79 and a debt-to-equity ratio of 0.32. The stock has a market cap of $37.06 billion, a PE ratio of 47.96, a price-to-earnings-growth ratio of 2.23 and a beta of 1.20. The business has a 50-day simple moving average of $357.09 and a 200-day simple moving average of $346.69.

Waters (NYSE:WAT - Get Free Report) last posted 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. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.20 billion. Waters had a return on equity of 15.60% and a net margin of 11.91%.Waters's revenue for the quarter was up 91.4% compared to the same quarter last year. During the same period last year, the company earned $2.25 earnings per share. 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 expect that Waters will post 14.51 EPS for the current year.

Hedge Funds Weigh In On Waters

Large investors have recently added to or reduced their stakes in the stock. Fundsmith LLP grew its position in shares of Waters by 9.6% in the third quarter. Fundsmith LLP now owns 3,955,498 shares of the medical instruments supplier's stock valued at $1,185,898,000 after purchasing an additional 347,091 shares during the period. Janus Henderson Group PLC raised its position in shares of Waters by 27.0% during the 1st quarter. Janus Henderson Group PLC now owns 1,638,772 shares of the medical instruments supplier's stock worth $488,028,000 after purchasing an additional 348,379 shares during the last quarter. Geode Capital Management LLC lifted its stake in Waters by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 1,593,388 shares of the medical instruments supplier's stock valued at $602,921,000 after buying an additional 8,590 shares in the last quarter. Invesco Ltd. lifted its stake in Waters by 32.3% in the 3rd quarter. Invesco Ltd. now owns 1,472,419 shares of the medical instruments supplier's stock valued at $441,446,000 after buying an additional 359,596 shares in the last quarter. Finally, Fundsmith Investment Services LTD. boosted its holdings in Waters by 11.1% in the 3rd quarter. Fundsmith Investment Services LTD. now owns 1,356,289 shares of the medical instruments supplier's stock worth $406,629,000 after buying an additional 135,504 shares during the last quarter. 94.01% of the stock is currently owned by institutional investors and hedge funds.

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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