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UPDATE: JP Morgan Downgrades Waters to Neutral on Limited Upside Potential

Related WAT
Waters Corporation (WAT) Q2 Earnings Beat, Revenues Increase
Earnings Scheduled For July 22, 2014

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.

Posted-In: JP MorganAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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