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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $570.00 price target on Thermo Fisher Scientific (NYSE:TMO), implying approximately 18% upside potential. The target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $500 to $630.
The research firm acknowledged that Thermo Fisher has outperformed the broader market significantly over the past three months, gaining 20% compared to the S&P 500’s 8% rise, which has made the risk/reward assessment more challenging.
Bernstein addressed valuation concerns by highlighting three factors supporting the current price: potential upside to estimates with conservative guidance for 2025-2027, additional upside from capital deployment through buybacks and acquisitions, and room for multiple expansion as valuation remains at historical troughs despite structural business improvements. InvestingPro analysis reveals that management has been aggressively buying back shares, with the company generating $43.2 billion in revenue and maintaining a P/E ratio of 27.95.
The firm described Thermo Fisher as its "favorite idea" for both short-term investment through year-end and for longer-term positions, recommending investors "buy the strength" despite the recent positive stock movement.
Bernstein provided a mini-primer for generalists and investors revisiting the stock after a pause, acknowledging that some pushback on Thermo Fisher’s 9-10% blended forward EPS growth compared to opportunities in other sectors is warranted.
In other recent news, Thermo Fisher Scientific has announced the pricing of a $2.5 billion notes offering across four different maturities. This offering includes $500 million of 4.200% senior notes due 2031, $750 million of 4.473% senior notes due 2032, $750 million of 4.794% senior notes due 2035, and $500 million of 4.894% senior notes due 2037. Meanwhile, Bernstein has reiterated its Outperform rating on Thermo Fisher with a price target of $570, following meetings with company management. William Blair has initiated coverage with an Outperform rating, highlighting the company’s strong position in the biopharmaceutical industry. On the other hand, Stifel has lowered its price target to $583 from $620, maintaining a Buy rating despite a mixed outlook. HSBC has downgraded the stock from Buy to Hold, reducing its price target to $510 due to concerns about medium-term growth prospects. These recent developments provide a snapshot of the varying analyst perspectives on Thermo Fisher’s financial and market performance.
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