Waters (WAT) Valuation in Focus as Analyst Coverage Highlights Growth Upside from BD Acquisition

Waters (WAT) gained attention after Rothschild & Co initiated coverage, citing the company’s strong profit margins and the transformative potential of its recent acquisition of BD’s Biosciences and Diagnostics business.

See our latest analysis for Waters.

Waters’ share price has made a sharp comeback this month, bouncing nearly 13% higher as investors responded to fresh optimism sparked by the BD acquisition and positive analyst coverage. Total shareholder return remains strong over three and five years. This suggests that while recent volatility is a reality, momentum is building behind the long-term growth story.

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But after this sharp rebound and renewed optimism, is Waters quietly undervalued and offering a rare long-term entry point? Or is the latest rally a sign that the market has already priced in its future growth?

Most Popular Narrative: 5.7% Undervalued

With Waters closing at $331, the most followed narrative puts fair value higher, setting a fresh tone in the valuation debate. This divergence highlights the gap between market price and projected worth, and points to key dynamics behind the scenes.

The planned combination with BD's Biosciences and Diagnostic Solutions business is expected to accelerate entry into biologics, precision medicine, and cell/gene therapy markets. These are segments with expanding analytical needs, unlocking new addressable markets and providing a multi-year revenue synergy opportunity that could directly impact future revenues and EPS growth.

Read the complete narrative.

Want the backstory on what’s fueling these bold projections? The real twist in this narrative lies in a mix of aggressive earnings targets, relentless margin expansion, and a future profit multiple more aligned with fast-growing tech than traditional life science. Get the details driving this eye-catching valuation and see what justifies the optimism or raises eyebrows.

Result: Fair Value of $351.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain. Unexpected hurdles with the BD integration or weaker trends in key pharma and government segments could challenge even the most bullish forecasts.

Find out about the key risks to this Waters narrative.

Build Your Own Waters Narrative

If you’ve got a different perspective or want hands-on insight, dig into the numbers and shape your own view in just minutes: Do it your way

A great starting point for your Waters research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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