Oct. 8 at 7:04 PM
UBS upgraded Agilent Technologies Inc. from Neutral to Buy, saying the life-sciences tools maker is positioned for above-peer growth driven by new product launches, improving demand in China, and strength in its specialty manufacturing business.
The broker raised its price target to
$170 from
$130, implying over 20% upside, and said investors are underestimating the durability of Agilent’s growth compared with peers.
UBS expects Agilent’s sales growth to accelerate to over 6% by fiscal 2027, giving it a four-year CAGR of about 6%, versus 4.5% for peers. “As these proof points become clear, we expect the stock to re-rate higher,” analysts wrote.
Recent instrument launches, including the Null III liquid chromatography system and Pro iQ mass spectrometer, should help Agilent capture pent-up demand from pharmaceutical QA/QC labs.
Improved biotech funding and stimulus measures are also boosting demand for analytical instruments in China, which accounts for about 20% of Agilent’s sales.
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