UPDATE: Goldman Sachs Upgrades Agilent (A) to Buy

(Updated - December 8, 2015 10:34 AM EST)

Goldman Sachs upgraded Agilent (NYSE: A) from Neutral to Buy with a price target of $48.00 (from $39.00). Analyst Isaac Ro said he sees better execution under its new CEO, Mike McMullen. He also pointed out conservative organic growth guidance, margin expansion, and M&A potential.

"Since taking over in March 2015, new CEO Mike McMullen has delivered two consecutive EPS beats which we view as a good sign of progress towards an era of more consistent and higher quality execution. In addition, FY16 guidance for organic growth looks conservative and we anticipate positive revisions to consensus estimates as the year progresses. Long-term we believe margin expansion goals also look conservative and have a positive view on the new Agilent which offers a more focused and cohesive franchise post the split from Keysight. Finally, valuation looks undemanding with shares trading in-line with peers despite a more favorable growth and better opportunities for margin expansion vs peers," said Ro.

For an analyst ratings summary and ratings history on Agilent click here. For more ratings news on Agilent click here.

Shares of Agilent closed at $40.70 yesterday.

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