Zacks_Analysts' Blog : Waters Launches TruView Vials - Analyst Blog

Waters Corporation (WAT) launched a new line of low-adsorption sample vials called TruView™ LCMS Certified Vials, which are certified for LC/MS/MS analyses. These vials are effective in analysis of LC/MS/MS with analyte concentrations of ng/mL or pg/mL, where analytical sensitivity and accuracy are critical.

There has been a rise in demand for low adsorption vials that provide accurate results with the LC/MS/MS technology evolving and levels of detection approaching or exceeding the part-per-trillion range. As per Waters, TruView glass vials are a certified effective and superior alternate to glass autosampler vial in the market.

These vials from Waters substantially lower analyte adsorption by limiting the concentration of free ions on the surface of the glass. Waters TruView LCMS Certified Vials has been launched globally by Waters.

Waters enjoys a solid footing in the chromatography instrument market, which we believe will be a prime benefactor for the company. A strong customer demand in mass spectrometry and HPLC will help the company to sustain a healthy performance in its organic sales growth over the next few years.

Further, a significant portion of Waters’ revenue is derived from recurring revenue sources, including consumables and services, which are expected to continue to increase over the longer term.

However, the analytical instrument and systems market is highly competitive. Major competitors of Waters are Agilent Technologies Inc. (A), Life Technologies Corporation (LIFE) and Thermo Fisher Scientific Inc. (TMO). Waters competes in its markets primarily based on instrument performance, reliability, service, and to a lesser extent, price.

Some competitors have instrument businesses that are generally more diversified, but are typically less focused on the company’s chosen markets. Some other competitors have greater financial and other resources compared to Waters.

In the recent period, the company experienced lower business growth in US Government academic market performance, which also suffered due to a difficult funding environment. Moving ahead in 2011, the company continues to see relevant stability in its end markets and continued momentum in the acceptance of new products.

Waters Corporation, an analytical instrument manufacturer, designs, manufactures, sells and services, through its Waters Division, high performance liquid chromatography, ultra performance liquid chromatography (LC) and mass spectrometry (MS) instrument systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans.

We currently maintain our Neutral rating on Waters, with a Zacks #3 Rank (short-term Hold recommendation) over the next one-to-three months.