Agilent cut to Neutral at Citi on macro headwinds

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• Life sciences company Agilent (NYSE:A) traded lower in the early pre-market trading on Friday after Citi downgraded its shares to Neutral from Neutral, citing a change in sentiment due to recessionary fears and slowing growth. The price target lowered to $140 from $175 per share, indicates a premium of ~14% to the last close.
• The analysts led by Patrick Donnelly argue that the company’s industry-leading exposure to the industrial/applied end market remains a negative overhang on the sentiment amid concerns of a near/mid-term economic downturn.
• Despite a constructive view on the fundamentals, the analysts do not think that the investors are willing to assign a higher multiple for the company in the near-term.
• However, they acknowledge that the company’s earnings are less vulnerable to risks now, unlike when the last recession hit the U.S. in 2008.
• Wall Street has remained bullish on Agilent (A) stock, with an average rating of Buy from analysts in line with Seeking Alpha Author ratings. However, Seeking Alpha's quant system, which consistently beats the market, rated A as a Hold.