Waters Corporation (WAT - Analyst Report) launched the next generation UltraPerformance LC separations technology called Waters® ACQUITY UPLC® I-Class System. This is the highest performing UPLC® system among all the systems engineered till now, featuring the lowest system dispersion and lowest carryover in the industry. With low dispersion peak capacity of the system is maximized, which advances chromatographic separations and optimizes the performance of any mass spectrometer.
The increasing research activity will be supported by ACQUITY UPLC I-Class System, which is especially designed for the rapid pace of laboratories. The new system helps scientists in analyzing sample-limited compounds amid a complex matrix while optimizing the performance of any mass spectrometer on the market.
In the long term, we expect Waters to benefit from its strong presence in the chromatography instrument market. A strong customer demand in mass spectrometry and HPLC will help the company to sustain healthy performance in its organic sales growth over the next few years. Further, a significant portion of Waters’ revenue is derived from recurring revenue sources, including consumables and services, which are expected to continue to increase over the longer term.
However, the analytical instrument and systems market is highly competitive. Major competitors of Waters are Agilent Technologies Inc. (A - Analyst Report), Life Technologies Corporation and Thermo Fisher Scientific Inc. (TMO - Analyst Report). Waters competes in its markets primarily based on instrument performance, reliability, service, and to a lesser extent, price. Some competitors have instrument businesses that are generally more diversified, but are typically less focused on the company’s chosen markets. Some other competitors have greater financial and other resources compared to Waters.
Waters Corporation, an analytical instrument manufacturer, designs, manufactures, sells and services, through its Waters Division, high performance liquid chromatography, ultra performance liquid chromatography (LC) and mass spectrometry (MS) instrument systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans.
We currently maintain our Neutral rating on Waters, with a Zacks #2 Rank (short-term Buy recommendation) over the next one-to-three months.