Overview
UBS lowered its target price for Waters Corp. (NYSE: WAT) to $370.00 from $395.00 on Tuesday, while keeping a Neutral stance on the shares. The firm cited group multiple contraction as the proximate reason for the reduction and emphasized that its rating balances growth opportunities with execution risks tied to Waters’ acquisition of Becton Dickinson’s Life Sciences businesses.
UBS rationale and modelling
According to UBS, Waters’ recent quarterly results and fiscal year 2026 guidance were broadly in line with expectations, supported by drivers such as a replacement cycle and growth in bioseparations. Nevertheless, UBS said the Becton Dickinson-related business has deteriorated "far more pronounced than expected," creating notable integration challenges. As a result, UBS said it has initiated modelling for the combined business conservatively to reflect those concerns.
Company results and guidance
Waters Corporation reported its fourth-quarter 2025 earnings with an adjusted EPS of $4.53, narrowly above the analyst consensus of $4.51. Revenue for the quarter came in at $932 million, slightly topping expectations of $928.09 million. Despite these modest beats, Waters issued a first-quarter profit projection that trails analyst estimates, forecasting EPS in a range of $2.25 to $2.35 compared with an expected $2.51 per share.
Analyst community response
Analysts beyond UBS have shown mixed reactions following Waters’ earnings and forward guidance. TD Cowen trimmed its price target from $400 to $373 and retained a Hold rating. Barclays resumed coverage with an Overweight rating and a $400 target, pointing to potential upside tied to the Becton Dickinson acquisition. Evercore ISI also resumed coverage with an In Line rating and set a $360 price target, citing the recent decline in the stock as a factor in its assessment.
Implications
UBS’ action underscores investor focus on integration execution and the near-term financial impact of acquisitions. While Waters’ fourth-quarter performance matched expectations on the top and bottom lines, forward-looking guidance and the condition of the acquired business units have prompted analysts to re-evaluate valuations and risk assumptions.
Bottom line
UBS’ downgrade of the price target to $370 reflects both market multiple compression and caution around the Becton Dickinson integration, even as Waters delivered quarterly results slightly ahead of forecasts. Broker responses have varied, leaving investors with a range of views on upside potential and execution risk for the company.
Summary of key metrics cited
- UBS price target: cut to $370 from $395; rating: Neutral.
- Waters Q4 2025 adjusted EPS: $4.53 vs. $4.51 expected; revenue: $932 million vs. $928.09 million expected.
- Q1 profit guidance: $2.25 to $2.35 per share vs. $2.51 expected.
- Other analyst actions: TD Cowen PT to $373 (Hold); Barclays resumes coverage Overweight PT $400; Evercore ISI resumes coverage In Line PT $360.