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Investing.com - Stifel lowered its price target on Thermo Fisher Scientific (NYSE:TMO), a prominent $179 billion market cap player in the Life Sciences Tools & Services industry, to $583.00 from $620.00 while maintaining a Buy rating on Thursday. According to InvestingPro data, the stock appears fairly valued based on its proprietary Fair Value model, with analyst targets ranging from $450 to $767.
The research firm’s adjustment follows Thermo Fisher’s second-quarter performance, which Stifel characterized as "strong" despite what it described as "above-average skittishness by Thermo standards." The company reported acceleration in pharmaceutical growth and notable market share gains, supported by robust financials including $43.2 billion in revenue over the last twelve months and a healthy gross profit margin of 41%.
Stifel highlighted Thermo Fisher’s execution "in a tough environment" as "on point" and noted that management addressed mid to long-term growth questions that had become "a meaningful sticking point for investors looking to own the stock."
The firm indicated that Thursday’s stock movement likely contained "a squeeze/covering element" while acknowledging the market environment remains "plenty choppy." Stifel suggested the quarterly performance and outlook reconfiguration could lead to "a constructive conversation that has been absent for several months."
Stifel also commented on potential positive momentum if the NIH budget remains "flattish/down only slightly into September," suggesting this could benefit Thermo Fisher and other companies in the sector. The company has demonstrated strong shareholder returns, maintaining dividend payments for 14 consecutive years with a 10.3% dividend growth rate. For deeper insights into TMO’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Thermo Fisher Scientific reported impressive financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $5.36, exceeding the forecasted $5.23, and generated revenue of $10.85 billion, surpassing predictions of $10.68 billion. Additionally, Thermo Fisher announced a significant leadership change with the retirement of its Chief Financial Officer, Stephen Williamson, effective March 31, 2026. James R. Meyer, currently Vice President of Financial Operations, will succeed Williamson as CFO starting March 1, 2026. In terms of stock analysis, HSBC recently downgraded Thermo Fisher from Buy to Hold, expressing concerns about the company’s medium-term growth prospects. Conversely, Bernstein raised its price target for Thermo Fisher to $570.00, citing strong performance in pharmaceutical R&D consumables. These developments reflect a mixed outlook from analysts regarding the company’s future growth trajectory.
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