J.P Morgan Raises PT On Agilent Technologies Following Strong Outlook, Earnings

Agilent Technologies A posted a solid quarter and raised its F2011 guidance despite a revenue recognition issue in the just-reported quarter. J.P Morgan views any potential near-term weakness as a buying opportunity. It believes the improved F2011 outlook sets the stage for further upside potential in the near to mid-term. Agilent's strong market position, a reinvigorated new product thrust, and operating leverage improvements remain factors. Expected stock movement: moving higher after potential pause. Given a revenue recognition issue related to Varian in the reported quarter, J.P Morgan thinks shares of Agilent could take a breather in the near term. The issue is explainable and in the rearview mirror; therefore, JPM encourages investors to look through the noise given the sizable F2011 guidance raise. J.P Morgan is lifting its Dec 11 price target to $53 from $50. Looking ahead, J.P Morgan is lifting its estimates across the board and think that upside potential remains intact. Despite the mixed performance in the near term, mid- to longer term drivers remain intact. J.P Morgan has an Overweight rating on A A closed Monday at $44.79