Thursday, Baird adjusted its outlook on Agilent Technologies Inc. (NYSE:A), a provider of instruments, software, services, and consumables for the entire laboratory workflow. The firm's analyst maintained an Outperform rating but reduced the price target to $136.00 from the previous $147.00. This change follows Agilent's report of fiscal second-quarter revenue that fell slightly short of Wall Street expectations, despite a modest earnings per share (EPS) gain driven by non-operating items.
The company experienced year-over-year order growth, including for its Life Sciences and Applied Markets Group (LSAG) excluding China, although order intake for April did not meet management's forecasts. Agilent has revised its fiscal year 2024 revenue and EPS guidance downward, citing increased caution in pharmaceutical capital spending, additional challenges in China, and the timing of projects in the National Association of Securities Dealers (NASD).
Baird anticipates Agilent's shares will likely come under pressure on Friday due to the slower-than-expected recovery. The analyst's commentary expressed a growing caution regarding companies in the instrumentation sector with exposure to the Chinese market, following Agilent's recent updates.
The revised guidance and Baird's price target adjustment reflect a more conservative outlook for Agilent in the near term, as the company navigates through industry-wide challenges and specific regional uncertainties. The Outperform rating suggests that Baird still sees potential in Agilent's stock despite the current headwinds.
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