Bernstein raises Thermo Fisher Scientific stock price target on pharma R&D strength

Published 24/07/2025, 15:52
Bernstein raises Thermo Fisher Scientific stock price target on pharma R&D strength

Investing.com - Bernstein SocGen Group raised its price target on Thermo Fisher Scientific (NYSE:TMO) to $570.00 from $560.00 on Thursday, while maintaining an Outperform rating on the scientific equipment maker. The company, with a market capitalization of $181.7 billion and annual revenue of $43.2 billion, maintains a "GOOD" financial health score according to InvestingPro analysis.

The price target increase follows Thermo Fisher’s strong performance, which included its best one-day gain since March 2020, with shares jumping 9.1%. According to Bernstein, the company’s channel, which largely consists of pharmaceutical R&D consumables, grew at a mid-single-digit rate during the quarter.

Bernstein cited four key reasons supporting its positive outlook, including increased certainty that pharmaceutical companies aren’t making major R&D cuts despite macro uncertainty. The firm also noted that contract research organizations have shown strong performance over the past 36 hours, which benefits Thermo Fisher as its PPD (NASDAQ:PPD) division represents 15% of company revenue.

The research firm highlighted Thermo Fisher’s potential to continue beating expectations and raising guidance, a pattern that has historically driven stock performance. Bernstein’s analysis indicates the company is well-positioned in the current market environment.

Longer-term advantages for Thermo Fisher include its leading position in U.S. fill-finish capacity and its Accelerator program, which allows the company to gain market share by combining contract development and manufacturing organization services with contract research organization offerings.

In other recent news, Thermo Fisher Scientific reported impressive financial results for the second quarter of 2025, exceeding Wall Street expectations. The company achieved an earnings per share (EPS) of $5.36, surpassing the forecasted $5.23. Revenue also outperformed predictions, reaching $10.85 billion compared to the anticipated $10.68 billion. In another development, Thermo Fisher announced that its Chief Financial Officer, Stephen Williamson, will retire effective March 31, 2026. James R. Meyer, currently Vice President of Financial Operations, will succeed Williamson as Senior Vice President and CFO starting March 1, 2026. Meyer has been with the company since July 2009 and has held various finance roles. Prior to joining Thermo Fisher, he worked at PricewaterhouseCoopers. These developments are part of the company’s recent updates.

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