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Investing.com - TD Cowen has lowered its price target on Thermo Fisher Scientific (NYSE:TMO) to $550 from $570 while maintaining a Buy rating on the stock. The company, currently valued at $157.48 billion, trades at a P/E ratio of 24.4x, which InvestingPro analysis indicates is relatively high compared to its near-term earnings growth potential.
With earnings scheduled for July 23rd, the firm expects an in-line second quarter and maintained full-year 2025 guidance will be sufficient to generate a rally in TMO shares, citing current depressed levels and sentiment in the market. The stock has experienced a significant 25.45% decline over the past six months.
TD Cowen noted that biopharma activity was normal in the second quarter, unaffected by MFN or tariff concerns, which the firm views as positive news for the company.
The research firm trimmed its second-quarter organic growth estimate to 1.0% from 1.2%, reflecting guidance for "similar" organic growth to the first quarter, compared to the 0.7% consensus among analysts.
TD Cowen anticipates Thermo Fisher will address its 7-9% long-range plan later this year, potentially lowering it, with the new $550 price target implying a 21x price-to-next-twelve-months earnings ratio.
In other recent news, Thermo Fisher Scientific has announced plans to acquire Sanofi (NASDAQ:SNY)’s sterile manufacturing facility in Ridgefield, New Jersey, which will expand its U.S. drug production capacity. The transaction is expected to close in the second half of 2025, subject to customary conditions, and will add over 200 employees to Thermo Fisher’s team. This acquisition is part of a strategic partnership with Sanofi to enhance U.S. manufacturing capabilities. Additionally, Scotiabank (TSX:BNS) has upgraded Thermo Fisher Scientific’s stock rating from Sector Perform to Sector Outperform, citing the company’s commercial scale and anticipated regional capabilities by 2026 as key factors for growth. Thermo Fisher also declared a quarterly cash dividend of $0.43 per common share, payable in October 2025, continuing its commitment to delivering value to shareholders. Moreover, the company has granted CEO Marc N. Casper performance-based restricted stock units valued at approximately $60 million, aimed at aligning long-term shareholder interests. The RSUs are part of a strategy to retain Casper’s leadership through at least May 2030. These developments reflect Thermo Fisher’s ongoing efforts to strengthen its market position and ensure continued growth.
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