Our $165 price target assumes a 50/50 weighting between an EV/EBITDA multiple of 21.7x our Q5-Q8 EBITDA estimate of $2,353mn and a P/E multiple of 25.5x our Q5-Q8 EPS estimate of $6.43. A has had one  of the healthiest balance sheets in our space, and we believe it deserves to trade above the peer group particularly given potential NASD upside and gradual instrument recovery.

Downside risks to our price target include 1) a deterioration in the pharma and industrial outlook, 2) a continuation of the elongated LC/MS replacement cycle, 3) China headwinds lingering well into FY25 into FY26, and 4) an aburpt slowdown in NASD.