Agilent Technologies, Inc. (A - Free Report) is making every effort to expand presence in the spectroscopy space on the back of its strengthening offerings.
The company has opened a state-of-the-art facility at the Harwell Science and Innovation Campus in Oxfordshire, U.K.
Spanning 710 acres, the new facility at the Harwell Campus strengthens research and development capabilities of Agilent in the field of spectroscopy. The center will also incorporate Agilent’s Raman spectroscopy business that was formerly known as Cobalt Light Systems.
The company had acquired Cobalt Light Systems at approximately £40 million ($51.5 million) in 2017.
It aims to focus on research and development to enable customers to perform better science, and develop new offerings in the field of vibrational spectroscopy.
Spectroscopy is the study of matter with electromagnetic radiation. Spectroscopic techniques have been used to assess the quality of samples across various industry verticals including pharmaceuticals, environment, biotechnology, and food and beverages.
Agilent Technologies, Inc. Price and Consensus
Spectroscopy Market Growth
The U.K. facility will allow Agilent to strengthen presence in the high-growth spectroscopy market.
Per a BCC Research report, the global market for spectroscopy technology is expected to witness a compound annual growth rate (CAGR) of 4.4% from $13.2 billion in 2018 to $16.3 billion by 2023.
We believe the latest efforts will help Agilent to cash in on the fast-growing spectroscopy segment. In addition, it will also strengthen Agilent’s presence in the growing U.K. market.
Agilent’s expanding product portfolio, end-market strength, and robust performance in Americas, China and Europe are key growth drivers. The company’s focus on aligning investments toward more attractive growth avenues and innovative high-margin product launches is a positive.
Notably, it has strengthened its position in the global pharma market. Recently, Agilent entered into a definitive agreement to acquire Winooski, VT-based BioTek Instruments, Inc. — a provider of life science instrumentation — in a bid to expand presence in the life science research space. The deal will likely strengthen its offerings related to live cell analysis as these product lines aid in quantification of biomolecules, biomolecular interactions and cellular structure.
The latest development is expected to fortify the company’s foothold in the spectroscopy market.
However, increasing competition and higher expenses are making margin expansion difficult for the company.
Zacks Rank & Stocks to Consider
Agilent currently carries at a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Booking Holdings Inc. (BKNG - Free Report) , Akami Technologies (AKAM - Free Report) and Itron, Inc. (ITRI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Booking Holdings, Akami and Itron is currently projected at 13.08%, 14.5% and 25%, respectively.
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