Core Insights - Waters Corporation is a leading analytical instruments and software company with a market cap of $22.4 billion, specializing in high-performance liquid chromatography, mass spectrometry, and laboratory informatics [1] Performance Overview - Over the past year, Waters shares have increased by 5.8%, underperforming the S&P 500 Index, which has risen by nearly 10.5% [2] - Year-to-date in 2025, WAT stock is up 2.1%, while the S&P 500 has seen an 11.2% rise [2] Sector Comparison - Waters has also underperformed compared to the Health Care Select Sector SPDR Fund, which gained 6% over the past year and 10.1% year-to-date [3] Recent Financial Performance - On November 4, Waters reported stronger-than-expected third-quarter results, with revenue of $800 million, an 8% year-over-year increase, driven by demand in pharmaceuticals and growth in recurring revenue streams [4] - Adjusted EPS surged to $3.40, reflecting a 16% increase from the previous year, aided by improved margins and accelerated instrument replacement cycles [4] Growth Drivers - Strength in LC-MS systems, double-digit growth in chemistry, and an 11% boost in pharmaceutical end-markets contributed to the company's momentum [5] - Waters raised its full-year sales and earnings guidance, indicating confidence in demand outlook [5] - Analysts expect WAT's EPS to grow by 10.5% to $13.10 on a diluted basis for the current fiscal year ending in December [5] Analyst Sentiment - Among 15 analysts covering WAT stock, the consensus rating is a "Moderate Buy," consisting of five "Strong Buy" ratings and ten "Holds" [6] - Rothschild & Co initiated coverage on Waters with a "Buy" rating and set a price target of $390, drawing renewed attention to the stock [7]

Core Insights - Becton, Dickinson and Company (BDX) and Waters Corporation (WAT) have announced a strategic collaboration to merge BD's Biosciences Diagnostic Solutions business with Waters' analytical technologies expertise, creating a new entity focused on high-throughput testing in life sciences and diagnostics [1][9] Transaction Details - The merger has been unanimously approved by both companies' boards and is expected to close by the end of Q1 2026, pending regulatory and shareholder approvals [2] - BD will receive $4 billion in cash and hold a 39.2% stake in the new entity through a Reverse Morris Trust structure [8][12] Financial Projections - The combined company aims for $6.5 billion in revenues by 2025, with projections of reaching $9 billion and $3.3 billion in EBITDA by 2030 [8][11] - The total addressable market is expected to double to approximately $40 billion, allowing access to adjacent segments [10] Synergy and Growth Potential - The merger is projected to generate approximately $200 million in cost synergies by the third year post-closing and $290 million in revenue synergies by the fifth year [13] - Annualized EBITDA gains of about $345 million are anticipated by 2030, reinforcing the long-term value creation potential of the transaction [13] Market Position and Performance - BD currently has a market capitalization of $50.76 billion and an earnings yield of 8.1%, outperforming the industry average of 5.3% [5] - BDX shares have lost 21.9% year-to-date, contrasting with a 6.1% gain in the S&P 500 during the same period [3]