In July 2025, Becton, Dickinson and Company (NYSE:BDX) agreed to combine its Biosciences & Diagnostic Solutions business with Waters Corporation (NYSE:WAT).

On Monday, William Blair initiated coverage on Waters with an Outperform rating.

Investment Thesis

While the merger adds complexity to the narrative, analyst Matt Larew sees a strong strategic fit and greater synergy upside than the market initially priced in.

William Blair estimates EPS accretion of ~$0.10 in 2026, rising to ~$2.70 by 2028.

Waters holds a leading position in the resilient quality assurance and control (QA/QC) market, with incremental growth catalysts beginning to emerge.

Core end markets are positioned to improve next year versus this year, marking the first year-over-year recovery since pre-COVID.

Analyst Larew notes that Waters shares fell about 20% in the ...