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Thermo Fisher shares hold Buy rating post investor day

EditorNatashya Angelica
Published 2024/09/20, 15:32
TMO
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On Friday, Thermo Fisher Scientific Inc. (NYSE:TMO) maintained its Buy rating and a price target of $658.00, as confirmed by TD Cowen. The endorsement follows the company's recent Investor Day, where Thermo Fisher's leadership highlighted its strong positioning across its four business segments, with a particular focus on its commercial engine and market share gains.

The company's long-range plan, projecting a 7-9% growth rate, was reaffirmed during the event. Management did not provide specific commentary regarding their expectations for 2025. However, the tone regarding biopharmaceutical demand was notably positive, contrasting with the mixed sentiments held by some investors.

According to TD Cowen's analysis, Thermo Fisher appears well-equipped for an economic rebound. The analyst's comments reflected confidence in the company's product and service leadership, which is expected to drive continued success in the market.

Thermo Fisher's Investor Day presentation emphasized the company's ongoing commitment to innovation and customer service excellence. The company's strategy is designed to leverage its strengths in serving the scientific community, ensuring sustained growth and market leadership.

The $658.00 price target set by TD Cowen suggests a positive outlook for Thermo Fisher's stock, indicating the firm's belief in the company's potential for robust financial performance in the forthcoming period.

In other recent news, Thermo Fisher Scientific has been the subject of several financial analyses. Stifel raised its price target for Thermo Fisher to $680, maintaining a Buy rating, while Baird maintained a target of $632 and an Outperform rating.

Citi held its Neutral stance with a target of $620, and Deutsche Bank (ETR:DBKGn) raised its target to $630, despite reducing its 2025 earnings per share estimates by 3%. These revisions came after Thermo Fisher's Investor Day, where the company's long-term growth outlook of 7-9% was emphasized.

Thermo Fisher also reported a second-quarter revenue of $10.54 billion, which led to an upward revision of its full-year guidance. In addition, the company secured approval for its $3.1 billion acquisition of Swedish biotech firm, Olink Holding AB (NASDAQ:OLK). This acquisition is expected to strengthen Thermo Fisher's position in the global life sciences industry.

BofA Securities increased its price target for Thermo Fisher to $675, maintaining a Buy rating. This adjustment came in anticipation of Thermo Fisher's 2024 Analyst Day, which is expected to provide updates on market trends and recent developments within the Life Sciences industry. Jefferies also increased their price targets for Thermo Fisher, indicating confidence in the company's future prospects.

These are all recent developments in Thermo Fisher's journey, highlighting the company's robust financial performance and growth potential. It's important to note that these analyses and projections come from financial institutions and not from Thermo Fisher itself.


InvestingPro Insights


Thermo Fisher Scientific Inc. (NYSE:TMO) has been actively reinforcing investor confidence through strategic financial maneuvers and consistent performance. Notably, the company has been aggressively buying back shares, signaling management's belief in the intrinsic value of the stock. Moreover, Thermo Fisher has raised its dividend for six consecutive years, underpinning its commitment to returning value to shareholders.

Analyzing the company's financial metrics, Thermo Fisher boasts a formidable market capitalization of $236.93 billion, reflecting its significant presence in the market. The company's P/E ratio currently stands at 38.31, which is relatively high, suggesting that investors are willing to pay a premium for its earnings. This is further substantiated by a PEG ratio of 3.68 for the last twelve months as of Q2 2024, indicating that the stock's price is high relative to its earnings growth rate.

Despite a slight contraction in revenue growth by -2.71% over the last twelve months as of Q2 2024, Thermo Fisher maintains a healthy gross profit margin of 40.69%, showcasing the company's ability to retain a significant portion of its sales as profit. The company's dedication to innovation and market leadership is mirrored by these solid financials, aligning with the positive sentiments expressed by TD Cowen.

For investors seeking a deeper dive into Thermo Fisher's financial health and future prospects, there are additional InvestingPro Tips available, providing a comprehensive analysis of the company's performance and market position. Find more insights and tips at: https://www.investing.com/pro/TMO

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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