Shares of Agilent Technologies Inc (NYSE:A) traded higher on Thursday, after the company reported upbeat fiscal first-quarter results.
Here are the key analyst insights:
- BofA Securities analyst Michael Ryskin upgraded the rating from Neutral to Buy, while cutting the price target from $150 to $145.
- RBC Capital Markets analyst Dan Leonard reiterated an Outperform rating, while lifting the price target from $153 to $155.
Check out other analyst stock ratings.
BofA Securities: Agilent Technologies reported strong results for the fiscal second quarter, delivering a beat despite certain headwinds and concerns over some key markets, Ryskin said in a note. He added that the company generated:
- Core growth of 6.3%, above the high end of its guidance.
- Operating margin that was 80 basis points (bps) higher than the guidance.
- Adjusted earnings that beat the guidance by 8 cents per share.
The Instruments segment generated high single-digit growth, once again outperforming broader tools trends, driven by market share gains, new platforms and replacement activity, the analyst stated. Management raised their full-year guidance roughly by the extent of the second-quarter beat, which assumes no major change in most end-markets, he noted.
"Combined with a very reasonable valuation, and a myriad of issues elsewhere in Tools, we see Agilent as an increasingly attractive asset," Ryskin further wrote.
RBC Capital Markets: Agilent Technologies reported revenues of $1.83 billion, representing around 6.3% organic growth and coming in significantly higher than expectations, Leonard said. Regarding the performance of different segments, he noted that:
- Both Life Sciences and Diagnostics Markets Group (LDG) grew around 8.6% organically, meaningfully higher than expected.
- Applied Markets Group (AMG) grew around 11.0% organically, surpassing estimates.
- Chemical and Advanced Materials (CAM) grew 8% fueled by semiconductor demand and chemical capex investments
Management raised the full-year guidance only by the extent of the second-quarter outperformance, the analyst stated. "Agilent exceeded Street expectations, flagging strength in several product cycles with more to come," he further wrote.
A Price Action: Agilent Technologies shares were up 16.90% during regular trading and down 0.03% in after-hours trading on Thursday, last trading at $135.38, according to Benzinga Pro data.
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