Waters

Morgan Stanley rates Waters as a winner from China’s final pricing framework for clinical laboratory services due to its position in mass spectrometry and more complex microbiological workflows. The framework, published by the National Healthcare Security Administration, retains a method-neutral structure, provides differentiated treatment and specific add-ons for mass spectrometry, and sets out more detailed rules for microbiology services. Danaher, Beckman Coulter and Thermo Fisher will be affected differently: Danaher faces limited risks to parts of its business, Beckman Coulter is under pressure in routine chemistry and immunoassays, and Thermo Fisher is less affected because of its portfolio structure and recent sales. » More on de.investing.com

Shares of Waters Corporation rose to a 52‑week high of $420.3 and are currently trading at $420.77, with a market capitalization of $41.3 billion. Year‑to‑date the stock is up 44.4%. In the second quarter the company beat expectations with adjusted earnings of $3.05 per share (estimate $3.01) and revenue of $1.64 billion (estimate $1.62 billion), but it faces currency headwinds and integration challenges. TD Cowen has upgraded the stock to Buy and raised the price target to $475, while analysts also warn of potential overvaluation. » More on de.investing.com

Waters reported adjusted EPS of $3.05 for Q2 (expectation $3.01) and revenue of $1.645 billion (expectation $1.62 billion). Management raised the full-year guidance for organic revenue growth to 7–9% and adjusted EPS to $14.45–14.65, supported by cost reductions, price increases and product launches. Premarket the stock fell about 1.3% as investors weighed currency effects, acquisition-related charges and the complexity of integrating acquired businesses. Risks remain from currency headwinds, integration efforts and execution of planned price increases. » More on de.investing.com