Bernstein on Waters Corp. (WAT): 'Buy the Dip'

Bernstein SocGen Group analyst Eve Burstein reiterated an Outperform rating and $430.00 price target on Waters Corp. (NYSE: WAT).

The analyst commented: "Buy the dip; We thought this was a solid quarter for Waters. 8% constant currency growth is above what we’ve seen from most peers in 4Q so far (with companies like Revvity and Mettler Toledo - not covered - at 6%, Thermo at 5%, and Avantor at 1%, Waters’s performance was well above average). And operating margin of 35.5% is solid; FX had a 130bps negative impact on adjusted operating margin, but the company still managed 60bps of margin expansion vs. 4Q23.

So what to do with the stock at this point? We argue this is the right time to buy the dip. We believe that guidance is conservative and there is upside to the numbers, so positive revisions will come throughout the year. Additionally, when we look back at historical cycles, we do often see a “jump” in the stock price vs. the SPX before / at the beginning of the cycle, and though there can be some volatility, the stock typically continues to outperform all the way to the end of the cycle (vs. e.g., crashing after the initial jump and failing to recover)."

For an analyst ratings summary and ratings history on Waters Corp. click here. For more ratings news on Waters Corp. click here.

Shares of Waters Corp. closed at $381.91 yesterday.

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