Waters (WAT) could unlock stronger growth by turning around the recent acquired Becton Dickinson (BDX) biosciences and diagnostics businesses while benefiting from resilient demand tied to drug manufacturing, RBC Capital said in a Thursday note.
Analysts said the acquired assets were under-managed rather than structurally weak and sees Waters' management applying its turnaround expertise to revive growth.
RBC also expects the company to benefit from industry consolidation opportunities and its roughly 15% exposure to pharmaceutical manufacturing, which could gain from US re-shoring trends.
RBC initiated coverage with an outperform rating and a $435 price target.
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