Agilent Hit By Cyclical Headwinds, But The Growth Story Remains Intact Long Term


  • Agilent’s may be an underappreciated winner with Alnylam’s recent clinical success, as manufacturing Amvuttra could generate more than $500M in revenue in the coming 5-7 years that isn’t in models.
  • Sharp cutbacks in capex spending across academic labs, biopharma, chemical, food/beverage, and material science companies has hit Agilent’s revenue hard this year, but the capex cycle will recover.
  • Despite current challenges, Agilent’s long-term leverage to growth in areas like advanced materials, biopharma, and genomics makes it worth consideration.
  • Life sciences tools companies almost never get conventionally cheap without a disaster, but there’s still a GARP argument for Agilent shares toward $150.

Scientist inject sample with micro syringe to TOF Mass Spectrometer for analysis in laboratory.

Suriphon Singha/iStock via Getty Images

If you follow enough stocks long enough, your brain starts to resemble a “crazy wall” (or, more nicely, an “investigation board”; imagine the TV trope of pictures, notes, and so on connected by strings), but sometimes that be helpful.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of alny, RHHBY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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