Agilent Technologies Still Has Improvements To Make

Agilent Technologies

current enterprise value fails to recognize the significant business mix enhancements and operating model improvements realized since the prior cyclical downturn, in Jefferies view. Jefferies hosted a series of investor meetings A's CFO last week. As a wider swath of investors appear to be noticing the significant business mix shifts and structural Electronic Measurement division enhancements Agilent has effected since the beginning of the prior macroeconomic downturn. While Agilent did not offer an official update on recent orders and revenue trends following its mid-September update, when it provided organic orders and revenue trends for August, it appears to us that its trajectory remained elevated through September. Although shares of A have staged a meaningful rebound from their August lows, we foresee a continuation of such outperformance in the coming periods on maturing investor confidence in A's structural business model enhancements. Risks to the target price include weaker than expected EM recovery and VARI integration hurdles. Jefferies has a Buy rating on A with a $42 PT A closed Monday at $33.75