J.P. Morgan Maintains Neutral on Waters

J.P. Morgan is out with its report today on Waters WAT, maintaining Neutral. In a note to clients, J.P. Morgan writes, "2Q11 results (8% organic) fell short of both high expectations and guidance (10% organic), as softer demand from academic and pharma customers took a toll, while management also noted what appears to be transitory disruption around several new product launches, including Acquity I-Class (shipping this quarter) and Synapt G2-S (introduced at ASMS in June). On the bottom line, EPS were further impacted by higher SG&A. However, despite the modest 2Q shortfall, with guidance unchanged for the year, we see little to change the investment debate, and we maintain our Neutral rating, in light of valuation." J.P. Morgan maintains a $95 PT on WAT. Shares of WAT closed Tuesday at $89.25.