Agilent Technologies (A) is facing product cycle momentum across key instrument platforms, with tailwinds from drug manufacturing exposure amid US pharmaceutical reshoring, RBC Capital Markets said in a note emailed Wednesday.
The company's newly launched instruments have early commercial traction, as evidenced by the growth of its liquid chromatography and single-quad mass spectrometry, RBC said, noting that a synchronized upcycle in key platforms can be a growth driver.
In addition, Agilent expects the US pharma reshoring to present a $1 billion boon for analytical instruments, the firm noted. RBC said the company has about a 25% sales exposure to this opportunity with its analytical tools used for quality control and specialty contract manufacturing services.
Agilent is set to release its fiscal Q2 results after the stock market closes on Wednesday.
RBC Capital Markets initiated coverage of Agilent, with an outperform rating and a $153 price target.
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