William Blair initiates coverage on Thermo Fisher stock with Outperform rating

Published 18/08/2025, 22:18
William Blair initiates coverage on Thermo Fisher stock with Outperform rating

Investing.com - William Blair initiated coverage on Thermo Fisher Scientific (NYSE:TMO), a $184 billion market cap life sciences giant, with an Outperform rating on Monday. According to InvestingPro data, this aligns with the broader analyst consensus, as the stock maintains a "Strong Buy" recommendation.

The research firm highlighted Thermo Fisher’s position as the "partner of choice" for the biopharmaceutical industry, citing the synergies created by the company’s best-in-class service offerings. The company generated $43.2 billion in revenue over the last twelve months, with a healthy gross profit margin of 41.3%.

William Blair noted that since 2017, Thermo Fisher has made significant acquisitions and organic investments to strengthen its biopharma services offerings, which now represent over 60% of laboratory products and biopharma services (LPBS) revenue.

These biopharma services currently account for approximately one-third of Thermo Fisher’s total company sales, according to the research firm’s analysis.

While acknowledging near-term constraints in the biopharma market, William Blair expressed confidence in the sector’s long-term resilience and attractiveness, factors that support their positive outlook on Thermo Fisher. The company trades at a P/E ratio of 28.3, with analyst price targets ranging from $450 to $767.

In other recent news, Thermo Fisher Scientific reported strong financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $5.36, exceeding the forecast of $5.23, and reported revenue of $10.85 billion, which was higher than the predicted $10.68 billion. In response to its performance, Bernstein raised its price target for Thermo Fisher to $570.00, citing the company’s robust pharmaceutical R&D channel growth. Meanwhile, HSBC downgraded the stock from Buy to Hold, expressing concerns about medium-term growth prospects and the need for more evidence to support a structural growth rate beyond 2027. Stifel also adjusted its price target to $583.00, maintaining a Buy rating and highlighting the company’s market share gains. Additionally, Thermo Fisher announced the retirement of CFO Stephen Williamson, effective March 31, 2026, with James R. Meyer set to succeed him. Meyer has been with the company since 2009 and has held various finance roles. These developments reflect a dynamic period for Thermo Fisher as it navigates both financial success and leadership transitions.

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