UPDATE: JP Morgan Downgrades Waters to Neutral on Limited Upside Potential
JP Morgan reduced its rating on Waters (NYSE: WAT) from Overweight to Neutral and reiterated its $90 price target.
JP Morgan noted, "We are downgrading our rating on Waters (WAT) from Overweight to Neutral, given a near-peak margin structure (which is unlikely to improve meaningfully from current levels, in our view), increasing competitive dynamics, and above-peer valuation (>17x P/E). While we expect the company to return to mid-single digit growth in 2013 against an easy comp, we believe that other names within our coverage universe present more appealing risk-reward, particularly given the substantial premium valuation. We look to become more constructive on a pullback."
Waters closed at $88.39 on Wednesday.
Latest Ratings for WAT
|Sep 2014||Morgan Stanley||Initiates Coverage on||Underweight|
|Aug 2014||Stifel Nicolaus||Initiates Coverage on||Hold|
|Oct 2013||Bank of America||Downgrades||Buy||Neutral|
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