NEW YORK (TheStreet) -- Shares of Agilent Technologies Inc. (A) closed down 1.62% to $40.18 after the company was downgraded to "market perform" from "outperform" at Wells Fargo, and to "neutral" from "outperform" at Robert W. Baird & Co.
Well Fargo said it lowered the measurement company's rating because the company is facing currency headwinds following the spin-off of Keysight Technologies Inc. (KEYS) .
The firm reduced and reset its valuation range for Agilent Technologies to $41-$43 for a standalone from $57-59 previously for the combined company.
"We believe Agilent's outlook for FY 2015 is well understood, leaving little room for upside surprise to earnings," said Wells Fargo analyst Tim Evans.
Baird cut the price target for Agilent Technologies to $42 from $59 and said its decision was a valuation call following the spin-off of Keysight.
Separately, TheStreet Ratings team rates AGILENT TECHNOLOGIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AGILENT TECHNOLOGIES INC (A) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- A's revenue growth trails the industry average of 21.1%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, A has a quick ratio of 2.08, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for AGILENT TECHNOLOGIES INC is rather high; currently it is at 57.87%. A has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.32% trails the industry average.
- You can view the full analysis from the report here: A Ratings Report