Analyst Note
| Julie Utterback, CFA |Wide-moat Waters reported strong underlying third-quarter results, but management trimmed its full-year adjusted EPS guidance on foreign currency exchange headwinds. Considering recently generated cash flows and the strong underlying demand, we are boosting our fair value estimate by the midsingle digits on a percentage basis. After being significantly overvalued during most of the pandemic, Waters' shares are now only slightly above fair value, in our opinion.