WAT - Agilent Hit By Cyclical Headwinds But The Growth Story Remains Intact Long Term

2024-06-27 08:24:25 ET

Summary

• Agilent's may be an underappreciated winner with Alnylam's recent clinical success, as manufacturing Amvuttra could generate more than $500M in revenue in the coming 5-7 years that isn't in models.
• Sharp cutbacks in capex spending across academic labs, biopharma, chemical, food/beverage, and material science companies has hit Agilent's revenue hard this year, but the capex cycle will recover.
• Despite current challenges, Agilent's long-term leverage to growth in areas like advanced materials, biopharma, and genomics makes it worth consideration.
• Life sciences tools companies almost never get conventionally cheap without a disaster, but there's still a GARP argument for Agilent shares toward $150.

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