Agilent Technologies Intrinsic Value – BofA Lowers Agilent Rating to ‘Neutral’ as Shares Reach Fair Value
December 14, 2023
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Agilent Technologies ($NYSE:A) is a leading provider of scientific instruments, software, services, and supplies to the life sciences, diagnostics, chemical analysis, and applied markets. Recently, Bank of America (BofA) lowered its rating on the company’s stock to “Neutral,” citing that the shares had reached fair value after a significant year-long rally. BofA analysts highlighted that Agilent’s P/E was now in line with historical averages, and that it did not believe there was enough upside potential to warrant a “Buy” rating. Nevertheless, BofA analysts remain optimistic about the company’s future growth prospects.
They emphasized that Agilent’s robust portfolio of high-end instruments and its strong market position should help it continue to perform well in the years ahead. They also noted that the company had made several acquisitions recently, which could help accelerate its growth. Although it has been trading near fair value recently, the company’s long-term prospects remain favorable.
Share Price
On Tuesday, Bank of America lowered its rating for Agilent Technologies to ‘Neutral’ from ‘Buy’ as the firm believes the stock is currently trading at fair value. Despite this, the stock opened at $128.0 and closed at $128.8, which represented a slight decrease of 0.1% from the prior closing price of $129.0. Bank of America stated they remain positive on Agilent Technologies’ long-term prospects, but that at the current share price, limited upside exists. The firm will be looking for additional catalysts to push the stock higher, such as progress with new product launches or share repurchases. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Agilent Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 6.83k | 1.24k | 18.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Agilent Technologies. More…
| Operations | Investing | Financing |
| 1.77k | -310 | -930 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Agilent Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.76k | 4.92k | 19.98 |
Key Ratios Snapshot
Some of the financial key ratios for Agilent Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.6% | 16.9% | 21.0% |
| FCF Margin | ROE | ROA |
| 21.6% | 15.7% | 8.3% |
Analysis – Agilent Technologies Intrinsic Value
At GoodWhale, we have conducted a fundamental analysis of AGILENT TECHNOLOGIES to determine its intrinsic value. After careful consideration of all the factors, we have concluded that the intrinsic value of AGILENT TECHNOLOGIES share is approximately $147.9. This measurement is based on our proprietary Valuation Line. However, AGILENT TECHNOLOGIES stock is currently trading at $128.8, which means it is undervalued by 12.9%. More…
Peers
The company has a strong presence in the market and competes with Qiagen NV, Thermo Fisher Scientific Inc, Illumina Inc, and other companies. Agilent Technologies Inc. is committed to providing innovative products and services that meet the needs of customers and enable them to achieve their research goals.
– Qiagen NV ($NYSE:QGEN)
Qiagen is a Dutch company that provides molecular diagnostic solutions, including kits and instruments for sample preparation and real-time PCR. The company has a market cap of 9.99B as of 2022 and a ROE of 13.07%.
– Thermo Fisher Scientific Inc ($NYSE:TMO)
Thermo Fisher Scientific Inc is a biotechnology company that manufactures and sells scientific instruments, reagents, and laboratory products. The company has a market capitalization of 201.37 billion as of 2022 and a return on equity of 12.43%. Thermo Fisher Scientific is a global leader in serving science, with revenues of more than $30 billion and a workforce of more than 70,000 employees. The company’s mission is to enable its customers to make the world healthier, cleaner, and safer.
– Illumina Inc ($NASDAQ:ILMN)
Illumina Inc. is an American company headquartered in San Diego, California. It is a provider of sequencing and array-based solutions for genetic analysis. The company has a market cap of $36.65 billion as of 2022 and a return on equity of 0.28%. Illumina’s products are used by academic and commercial researchers in a variety of fields, including cancer, infectious disease, genetics, and more.
Summary
Agilent Technologies is a global leader in life sciences, diagnostics and applied chemical markets. Bank of America has recently issued a downgrade for the stock from “buy” to “neutral”, citing that the current share price is now fairly valued after a notable rally. The analysts suggest that investors should take a wait-and-see approach due to the stock being fairly priced. They also note that Agilent still has solid fundamentals and could be attractive if market volatility continues.
However, they warn that any further upside could be limited. With this market analysis, investors should carefully weigh their options before investing in Agilent Technologies.
