Agilent Technologies' (A) expanding product-cycle momentum across key instrument platforms and solid demand tied to drug manufacturing point to improving fundamentals, RBC Capital Markets said Wednesday in a report.

Agilent outperformed Wall Street expectations in fiscal Q3 and boosted guidance on strength across several product areas, including early orders linked to pharmaceutical reshoring and continued demand in advanced materials, the report said.

In Q3, the company reported 7% organic growth in chemical and advanced materials markets, prompting a full-year guidance increase for those segments to high-single-digit growth from the prior mid-to-high-digit outlook, RBC said.

Agilent's product cycle appears to be progressing well and remains diversified, with low double-digit growth in liquid chromatography against a mid-teens comparison, while demand for new gas chromatography products came in at about double the forecast, the report said.

RBC raised its price target on Agilent stock to $185 from $155 and maintained its outperform rating.

Price: 158.00, Change: +2.91, Percent Change: +1.88