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

Waters (NYSE:WAT) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Sunday.

A number of other equities analysts have also recently commented on WAT. Morgan Stanley initiated coverage on shares of Waters in a research note on Monday, December 1st. They issued an “equal weight” rating and a $423.00 price objective for the company. TD Cowen reiterated a “hold” rating on shares of Waters in a research report on Wednesday, November 5th. HSBC assumed coverage on Waters in a research note on Tuesday, January 27th. They set a “buy” rating and a $460.00 price objective on the stock. Guggenheim assumed coverage on Waters in a research note on Tuesday, January 6th. They issued a “buy” rating and a $440.00 price objective for the company. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Waters in a research report on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $399.12.

Waters Stock Performance

NYSE:WAT opened at $327.52 on Friday. The company has a market cap of $19.50 billion, a price-to-earnings ratio of 30.10, a PEG ratio of 3.19 and a beta of 1.18. Waters has a 1 year low of $275.05 and a 1 year high of $414.15. The stock’s 50 day simple moving average is $386.44 and its two-hundred day simple moving average is $347.52. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.53 and a quick ratio of 1.08.

Waters (NYSE:WAT) last posted its earnings results on Thursday, February 12th. The medical instruments supplier reported $4.53 EPS for the quarter, beating analysts’ consensus estimates of $4.50 by $0.03. Waters had a return on equity of 36.59% and a net margin of 20.89%.The firm had revenue of $932.36 million during the quarter, compared to the consensus estimate of $928.17 million. During the same period in the prior year, the company earned $4.10 EPS. The company’s quarterly revenue was up 6.9% compared to the same quarter last year. As a group, equities analysts anticipate that Waters will post 12.86 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Waters

Hedge funds have recently bought and sold shares of the business. Veritas Asset Management LLP acquired a new position in Waters during the 3rd quarter valued at about $175,320,000. Deroy & Devereaux Private Investment Counsel Inc. grew its stake in shares of Waters by 41.9% during the third quarter. Deroy & Devereaux Private Investment Counsel Inc. now owns 13,802 shares of the medical instruments supplier’s stock worth $4,138,000 after acquiring an additional 4,077 shares during the last quarter. Envestnet Asset Management Inc. increased its holdings in shares of Waters by 5.0% during the second quarter. Envestnet Asset Management Inc. now owns 126,070 shares of the medical instruments supplier’s stock valued at $44,004,000 after acquiring an additional 5,980 shares in the last quarter. Figure 8 Investment Strategies LLC increased its holdings in shares of Waters by 46.4% during the third quarter. Figure 8 Investment Strategies LLC now owns 7,793 shares of the medical instruments supplier’s stock valued at $2,336,000 after acquiring an additional 2,471 shares in the last quarter. Finally, Union Bancaire Privee UBP SA purchased a new position in shares of Waters in the 3rd quarter valued at approximately $1,624,000. 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: Q4 results slightly beat expectations — Waters reported non-GAAP EPS of $4.53 (vs. $4.50 consensus) and revenue of ~$932M, with revenue up ~6.9% YoY and strong chemistry and LC‑MS demand. This underpins near-term profitability and recurring revenue trends. Press Release: Q4 and FY 2025 Results
• Positive Sentiment: BD combination closed — Waters completed the Reverse Morris Trust transaction with BD, creating a larger life‑sciences player and giving Waters access to BD’s biosciences & diagnostic portfolio and scale benefits that management expects to convert into margin expansion over time. This materially changes the company’s revenue base and strategic runway. PR Newswire: BD Combination
• Neutral Sentiment: Ambitious FY 2026 targets tied to integration — Management set FY 2026 EPS guidance of $14.30–$14.50 and projected revenue roughly $6.4B–$6.46B, with a targeted ~28.1% margin as BD assets are integrated. The FY EPS range slightly exceeds consensus but reflects the enlarged company post-transaction; realization depends on execution. MSN: FY 2026 Projections
• Negative Sentiment: Q1 2026 EPS guidance misses Street — Waters guided Q1 EPS to $2.25–$2.35 versus a ~$2.52 consensus, prompting a sell‑side reaction and an intra‑day share drop as investors priced in near‑term softness from the transition and integration-related dynamics. Yahoo Finance: Q1 Forecast Below Estimates
• Negative Sentiment: Analyst reaction and rating change — Some analysts have trimmed near‑term ratings or moved to a hold stance reflecting uncertainty around integration execution, near‑term EPS cadence, and the enlarged company’s valuation multiple. This adds selling pressure while investors reassess the combined company story. Article: Rating Lowered to Hold

Waters Company Profile

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.