Agilent Technologies (A) and Waters (WAT) are facing differing outlooks based on end-market exposure, product cycles and integration risks, Morgan Stanley said in a note Tuesday.
The firm initiated Agilent at overweight and Waters at equal-weight.
Morgan Stanley analysts said Agilent is positioned for long-term EPS growth following recently implemented strategic and organizational changes are expected to support stronger revenue and margin expansion.
Agilent's price target is at $180 per share.
For Waters, Morgan Stanley said it sees "clear signs of progress" in the company's core analytical instrument business but is awaiting more visibility into its integration of Becton Dickinson's biosciences and diagnostic assets.
The firm also said the size and profiles of the acquired businesses introduce near-term uncertainty despite longer-term synergy potential.
Morgan Stanley pegged the company's price target at $423 per share.
Price: 150.67, Change: +0.57, Percent Change: +0.38
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