Agilent stock gets ’buy’ upgrade from BofA after impressive quarterly beat
Investing.com -- Bank of America upgraded Agilent Technologies to “Buy” from “Neutral,” citing strong execution, market share gains, and resilience across key end markets despite broader concerns in the life sciences tools sector.
The brokerage set a new price objective of $145, slightly below its prior $150 target, while maintaining confidence in the company’s long-term growth outlook.
The upgrade follows Agilent’s fiscal second-quarter results, where the company exceeded expectations across several metrics. Core revenue growth came in at 6.3%, above the high end of guidance, while operating margins and adjusted earnings per share also topped forecasts.
Analysts highlighted continued strength in liquid chromatography (LC), gas chromatography (GC), and LC/MS replacement cycles, which they said remain in the “early innings” of growth.
BofA analysts noted that Agilent’s instruments business delivered high single-digit growth during the quarter, supported by competitive wins, innovation-led displacement, and improving market share trends. Management also pointed to demand expanding beyond simple replacement activity, as new product platforms gain traction among existing customers.
The company’s Chemical and Advanced Materials (CAM) segment also performed better than expected, posting 8% core growth driven by strength in semiconductor and chemicals markets. Analysts said GC replacement activity tied to aging equipment fleets helped fuel momentum, particularly in the Americas and Asia outside China, while spectroscopy demand remained robust across semiconductor and advanced materials workflows.
Agilent modestly raised its full-year guidance after the quarterly beat, with management expressing a more constructive outlook on CAM, forensics, and diagnostics markets, although conditions in food testing remain softer. BofA expects second-half revenue and margin progression to remain achievable despite tougher year-over-year comparisons.
The brokerage also revised its earnings estimates upward, forecasting adjusted EPS of $6.05 for 2026 and $6.65 for 2027, compared with prior estimates of $5.97 and $6.57, respectively.