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Baird cuts Thermo Fisher shares target to $622 from $632 amid mixed 3Q results

Published 2024/10/24, 19:46
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On Thursday, Thermo Fisher Scientific (NYSE:TMO) saw a revision in its price target to $622 from the previous $632 by Baird, while the firm kept its Outperform rating on the shares. The adjustment follows Thermo Fisher's third-quarter earnings report, which revealed revenue figures slightly below the market consensus, although earnings per share (EPS) exceeded expectations.

The company's management described the market conditions as roughly in line with their projections, citing modest improvements and stability across its product portfolio.

Despite Thermo Fisher's decision not to provide formal comments on its 2025 outlook at this time, the management team conveyed a positive stance regarding a gradual recovery driven by various factors, including pharmaceutical and biotech spending, the Chinese market, and bioproduction.

In the absence of a formal 2025 forecast, the attention remains on the company's potential performance in the near term. Nevertheless, Baird's analyst emphasized a positive outlook for Thermo Fisher's stock value, particularly over a medium-term horizon. The analyst's perspective suggests confidence in the company's ability to navigate current market conditions and capitalize on future growth drivers.

Thermo Fisher's stock continues to be watched by investors as the company progresses toward its long-term goals, with Baird's latest price target reflecting an expectation of growth despite near-term market uncertainties.

In other recent news, Thermo Fisher Scientific Inc (NYSE:TMO). reported strong financial performance in its third-quarter earnings call for 2024. The company announced a revenue of $10.6 billion and an adjusted operating income of $2.36 billion, resulting in an adjusted earnings per share (EPS) of $5.28.

Despite facing challenges from reduced COVID-19 testing revenue, Thermo Fisher has demonstrated resilience through innovation and strategic acquisitions, notably the recent purchase of Olink.

Consequently, the company raised its full-year adjusted EPS guidance to a range of $21.35 to $22.07, while maintaining its revenue forecast within the range of $42.4 billion to $43.3 billion. These recent developments indicate a strong financial performance that Thermo Fisher expects to continue into 2024.

The company's strategic growth is further highlighted by its partnership with the National Cancer Institute.

InvestingPro Insights

To complement Baird's analysis of Thermo Fisher Scientific (NYSE:TMO), recent data from InvestingPro offers additional context for investors. As of the last twelve months ending Q3 2024, Thermo Fisher reported a revenue of $42.37 billion, with a slight revenue growth decline of 2.42%. Despite this, the company maintains a strong market position with a market capitalization of $220.22 billion.

InvestingPro Tips highlight Thermo Fisher's financial stability and shareholder-friendly policies. The company has maintained dividend payments for 13 consecutive years and has been raising its dividend for 6 consecutive years. This consistent dividend policy aligns with the management's positive outlook on gradual recovery mentioned in the article.

Furthermore, Thermo Fisher's profitability is underscored by its gross profit of $17.2 billion and an operating income margin of 17.66% over the last twelve months. These figures support the company's ability to navigate current market conditions effectively, as discussed in the Baird analysis.

For investors seeking a deeper dive into Thermo Fisher's financials and future prospects, InvestingPro offers 12 additional tips, providing a comprehensive view of the company's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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