Analyst Note| Julie Utterback, CFA |
Agilent reported fiscal third-quarter results that put it on track to beat our near-term expectations. Considering that and higher cash flow expectations for the very long run based on its ongoing investment activities, we are raising our fair value estimate to $77 per share up from $69. We continue to believe a wide moat surrounds Agilent’s analytical instrument and diagnostic businesses. Also, Agilent's ongoing investments in other building blocks of medical therapies, such as expansion plans for its oligonucleotide business, add to its longer-term growth trajectory.