Evercore ISI has resumed coverage of Waters Corp. with an In Line recommendation and a price objective of $360.00. The research house notes its target sits close to an independent fair-value assessment and implies a modest premium to the stock's most recently reported market level of $328.14.
The analyst's coverage restart comes after Waters shares fell roughly 13% in the recent period. That decline follows a cluster of operational and guidance-related developments cited in the note. Despite the pullback, the stock has delivered a 35.6% price return over the last six months.
Drivers identified by Evercore ISI
- BD Life Sciences weakness: The research note highlights a 10% decline in the BD Life Sciences business during the December quarter. Evercore ISI says this setback raises questions about fiscal year 2026 growth assumptions for the newly combined company.
- Earnings cadence: The firm points out that reported earnings are skewed toward the second half of the fiscal year, a factor that could amplify perceptions of near-term underperformance.
- Margin and tax dynamics: Operating margins in the fourth quarter missed internal expectations, while adjusted earnings per share were supported by lower taxes, according to the analyst note.
Evercore ISI's $360 target translates to approximately 25 times calendar year 2026 price-to-earnings and about 21 times EBITDA on the firm's estimates. The research house has a fiscal year 2026 EPS projection of $14.36, which it characterizes as falling in the lower half of the company's previously outlined range.
Earnings and guidance context
Waters reported fourth-quarter adjusted EPS of $4.53, marginally above a $4.51 consensus level, and revenue of $932 million compared with an expected $928.09 million. However, the company issued a first-quarter profit outlook that came in below analyst estimates, projecting $2.25 to $2.35 per share against a $2.51 per-share consensus. That guidance shortfall was cited as a factor behind the stock's notable selloff.
Market participants reacted to both the quarterly results and the forward profit range, prompting closer scrutiny from analysts and investors. At the time of the reporting, no analyst upgrades or downgrades had been issued in response to these developments, per the coverage note.
Implications - Investors and market analysts will be watching the BD Life Sciences segment's trajectory, the timing of earnings contributions across the fiscal year, and margin recovery as they assess Waters' valuation relative to the firm's $360 target.