UBS Warburg Cuts Waters Corp. to 'Buy'
UBS Warburg downgraded Waters Corp. (WAT ) to buy from strong buy.
On Monday a jury found that Waters' Quattro Ultima mass spectrometry line infringed on a patent. Analyst Vivek Khanna is taking a somewhat more cautious stance on Waters as a result of the ruling. The company is not allowed to sell the Quattro Ultima line in the U.S., and therefore must pay $47.3 million in damages.
Khanna says Quattro Ultima generated $22 million ($0.04 to $0.06 earnings per share) in 2001. He notes the company is putting off the Monday launch of Quattro Platinum as a result of the ruling. Khanna sees an additional risk of a judge taking a broader interpretation of ruling, which could impact additional product lines and potentially cost Waters another $0.06 in EPS.