On Friday, Agilent Technologies Inc. (NYSE:A) received an upgrade from Stifel, shifting its stock rating from Hold to Buy. The financial firm also raised the price target for Agilent to $163.00, up from the previous target of $145.00. The upgrade was based on a positive outlook for instrument demand in the second half of the year, as indicated by a biopharma industry survey.
Stifel's assessment pointed to an expected acceleration in instrument demand, which, coupled with a few less optimistic indicators on the consumables side, has improved Agilent's relative appeal in the market. The analysis also highlighted company-specific factors such as platform choice and portfolio enhancements that contribute positively to Agilent's prospects.
In addition to the biopharmaceutical sector, Stifel noted that demand in applied markets, specifically in PFAS (per- and polyfluoroalkyl substances) and advanced materials testing, is likely to be a differentiating factor for growth. These areas are expected to contribute to the company's differentiation and expansion.
Looking forward, Stifel finds the fiscal second quarter estimates for Agilent to be reasonable, following a period of stabilization in the first quarter. The firm also anticipates potential upside for the Life Sciences and Applied Markets Group (LSAG) later in the year. While it may be a few quarters before Agilent's order book reflects significant growth, the company is anticipated to return to growth soon, with the focus shifting to the latter half of the year.
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