Waters (WAT) Stock Forecast & Price Target

Waters Corporation experienced a solid organic revenue growth of 4.2% in 3Q24, reaching $655.7 million, outperforming sales estimates, with significant contributions from the pharmaceutical sector, particularly in the U.S. and Europe, which saw growth rates of 6% and 5%, respectively. The company also reported strong adoption of its mass spectrometry products, notably the Xevo TQ Absolute, with unit sales increasing over 70% year-over-year, driven by demand in PFAS applications and various pharmaceutical quality assurance processes. Additionally, all geographic regions returned to positive growth, reflecting resilient performance across diverse end markets and a promising rebound in pharmaceutical growth trends.

Waters has revised its organic growth outlook downward from 0.5-1.5% to a decline of 2-1%, indicating a significant deterioration in financial performance. The company's revenue for the third quarter of 2023 experienced a 4% organic decline, driven largely by a more than 20% decrease in sales from China, which has had a notable negative impact across various segments. Additionally, the lackluster performance of newly launched products has contributed to an overall challenging environment, culminating in an 8% organic revenue decline for the fourth quarter of 2023.