Morgan Stanley initiated coverage of Agilent Technologies (NYSE: A) with an Overweight rating and a $180 price target, saying the company's new strategic initiatives and “Ignite” transformation program positioned it to accelerate growth across key analytical and diagnostics markets.

The firm said Agilent's platform technologies, workflow automation, and services were increasingly well aligned with customer needs in the analytical lab environment, particularly as tighter budgets and labor shortages heightened demand for efficiency solutions. Agilent's leadership in gas chromatography and spectroscopy, coupled with expanding opportunities in battery materials, semiconductors, and PFAS regulatory compliance, was expected to bolster long-term growth.

Morgan Stanley also highlighted Agilent's CrossLab Group, which generated roughly 42% of FY24 revenue, as an underappreciated asset that strengthened customer retention and recurring revenue. The firm added that Agilent's increased focus on biopharma and diagnostics, including the acquisition of BIOVECTRA and expansion of the Dako Omnis pathology platform, provided additional growth opportunities as the sector continued to recover.