What Happened?
Shares of scientific instruments company Waters Corporation (NYSE: WAT) jumped 3.2% in the morning session after Rothschild & Co initiated coverage on the stock with a 'Buy' rating and a $390 price target.
The research firm described Waters as a leading company in the field of analytical instruments, which are tools used for scientific analysis. Rothschild noted the company's strong profit margins and highly dependable business model. A key factor in the positive outlook was Waters' recent acquisition of BD's Biosciences and Diagnostics business. This purchase was seen as doubling the company's total potential market to around $40 billion. The firm viewed the deal as value-adding and projected strong growth in earnings per share for the combined company in the coming years.
After the initial pop the shares cooled down to $328.79, up 3.3% from previous close.
Is now the time to buy Waters Corporation? Access our full analysis report here.
What Is The Market Telling Us
Waters Corporation’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 3.4% on the news that reports revealed a potential drug-pricing agreement between the White House and the pharmaceutical industry.
The Trump administration is advancing its “Most Favored Nation” initiative, which aims to lower prescription drug costs for Americans. This policy would tie the prices of medications in the U.S. to the lowest costs paid by other wealthy nations. As part of this push, Pfizer has reportedly entered into an agreement to voluntarily sell its medications through Medicaid at these reduced prices. The move comes as the administration intensifies pressure on drugmakers to make prices more affordable. While pricing controls can often be a headwind, the market's positive reaction suggests that investors may see this voluntary agreement as a way to resolve regulatory uncertainty, providing a clearer path forward for the industry.
Waters Corporation is down 10.8% since the beginning of the year, and at $328.79 per share, it is trading 21.2% below its 52-week high of $417.28 from January 2025. Investors who bought $1,000 worth of Waters Corporation’s shares 5 years ago would now be looking at an investment worth $1,633.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
