Raising Fair Value Estimate After Agilent Boosts Outlook for Fiscal 2021 on Broad Strength

Wide-moat Agilent reported first-quarter results that significantly beat FactSet consensus on the top and bottom lines, suggesting the company is continuing to gain market share and allowing management to boost its outlook for fiscal 2021 after only one quarter of results. We have raised our fair value estimate to $95 per share from $77 after increasing near-term estimates above management's new outlook ($6 of change), recognizing cash flow generated since our last update ($3 of change), and raising our longer-term cash flow projections given Agilent's continued investments in fast-growing end markets, such as its oligonucleotide business ($9 of change).