UPDATE: Bank Of America Reiterates On Agilent Technologies Following Investor Presentations

In a report published Monday, Bank of America analyst Derik de Bruin reiterated a Buy rating on

, but lowered the price target from $64.00 to $59.00. In the report, Bank of America noted, “On Monday (10/20), Agilent (A) and Keysight (KEYS) will begin trading separately on synthetic markets to help calibrate the prices of the standalone stubs ahead of official distribution on November 1st. On Friday (10/17) after market close, Agilent released an investor presentation with additional color on the standalone business; KEYS also issued a new deck late last week. As a result of these disclosures and as detailed herein, we lower our forecasts for the standalone companies and adjust our PO on ‘Old A' based on a SOTP to $59 (~$42 for New A and ~$17 for KEYS based on normalized CY16 ests.) from $64. Based on our updated assumptions and using CY15 as a basis, we think ‘New A' could initially be valued in the low-to-mid-$30s and KEYS in the mid-20S to low-$30s, below our prior expectations.” Agilent Technologies closed on Friday at $52.27.