Interest Rate Sensitivity: Stocks that are particularly sensitive to declines in short-term interest rates, such as Blackstone and AvalonBay Communities, are expected to perform well if the Federal Reserve cuts rates again and signals further easing.
Impact of Fed's Actions: The Federal Reserve's decisions on its overnight benchmark rate directly influence short-term rates, with recent cuts leading to a significant decline in the 2-year Treasury yield, which has historically benefited certain S&P 500 stocks.
Top Performers Identified: A search for S&P 500 stocks that gained the most during months of falling rates revealed a list of 25 stocks, including homebuilder Lennar and rental property owner AvalonBay, which are likely to benefit from lower financing costs and increased demand.
Market Expectations: While there is uncertainty about the Fed's willingness to cut rates further in December, the market anticipates more easing ahead, which could lead to additional declines in short-term rates and further benefits for the identified stocks.
Wall Street analysts forecast WAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WAT is 419.78 USD with a low forecast of 360.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast WAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WAT is 419.78 USD with a low forecast of 360.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 400.420
Low
360.00
Averages
419.78
High
480.00
Current: 400.420
Low
360.00
Averages
419.78
High
480.00
Guggenheim
Subbu Nambi
initiated
$440
2026-01-06
Reason
Guggenheim
Subbu Nambi
Price Target
$440
AI Analysis
2026-01-06
initiated
Reason
Guggenheim analyst Subbu Nambi initiated coverage of Waters with a Buy rating and $440 price target.
William Blair
Outperform
initiated
2026-01-05
Reason
William Blair
Price Target
2026-01-05
initiated
Outperform
Reason
William Blair initiated coverage of Waters with an Outperform rating. The firm says the company's key end markets are positioned for a better year for first time since pre-COVID. Results in the sector have bottomed, and most overhangs are either dissipating or flipping from headwinds to tailwinds in 2026, the analyst tells investors in a research note.
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Wells Fargo
Brandon Couillard
Equal Weight
maintain
$385 -> $415
2025-12-15
Reason
Wells Fargo
Brandon Couillard
Price Target
$385 -> $415
2025-12-15
maintain
Equal Weight
Reason
Wells Fargo analyst Brandon Couillard raised the firm's price target on Waters to $415 from $385 and keeps an Equal Weight rating on the shares. With U.S. policy uncertainty lifting on Pharma and forward growth expectations already well-anchored with room for upside, the firm likes the setup for Tools.
Wolfe Research
Doug Schenkel
Peer Perform -> Outperform
upgrade
$480
2025-12-10
Reason
Wolfe Research
Doug Schenkel
Price Target
$480
2025-12-10
upgrade
Peer Perform -> Outperform
Reason
Wolfe Research analyst Doug Schenkel upgraded Waters to Outperform from Peer Perform with a $480 price target. The stock is positioned to outperform given Waters' above average core growth, upside to forma financial targets, "very attractive" free cash flow profile, and "top-notch" management team, the analyst tells investors in a research note. Wolfe believes the company is positioned to generate 6%-7% revenue growth and 200-300 basis points of operating margin expansion during its five-year model period.
About WAT
Waters Corporation offers analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences. The Company's segments include Waters and TA. The Company primarily designs, manufactures, sells and services high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. The Company designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA Instruments (TA) product line. The Company is also a developer and supplier of advanced software-based products that interface with the Company’s instruments, as well as other manufacturers’ instruments. It operates directly in over 35 countries and has products available in more than 100 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
