UPDATE: ISI Group Initiates Waters with Market Weight, $86 PT on UPLC Upgrade Cycle Leverage

ISI Group initiated its coverage on Waters

with a Market Weight rating and a price target of $86. ISI Group commented, "We are initiating coverage on shares of Waters with a Market Weight rating and a price target of $86.00, which on a forward basis equates to ~11x EV/EBITDA and ~15x operating EPS. Our thesis for WAT is based on outsized leverage to the multi-year UPLC upgrade cycle, attractive exposure to the emerging markets (biopharma / applied bias), and industry-leading capital returns balanced against a reasonable premium valuation." Waters closed at $75.96 on Monday.