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On Friday, Stifel, a financial services company, raised its price target for Thermo Fisher Scientific (NYSE:TMO) shares to $680 from the previous $615, while reaffirming a Buy rating for the stock. The revision follows Thermo Fisher's Investor Day, which provided insights into the company's portfolio strengths, customer relationships, and performance improvement programs.
During the event, Thermo Fisher's management emphasized the company's long-term growth outlook, maintaining a projection of 7-9% growth. This forecast aligns with an anticipated 4-6% market growth rate. The management team chose not to comment on expectations for 2025 but reiterated their confidence in the company's growth trajectory.
Stifel's analysis noted that while there were no significant updates regarding Thermo Fisher's operations in China, the company's commentary on the biopharma market was positive. The analyst found the discussions during Investor Day to be beneficial, highlighting Thermo Fisher's consistent execution and reasonable valuation.
The firm also pointed out Thermo Fisher's potential for above-average market share gains, which could support the company's revenue growth. This aspect is particularly important for investors focusing on the growth prospects of core Tools companies for the upcoming year.
In other recent news, Thermo Fisher Scientific has been the focus of several investment firms' attention. Baird maintained an Outperform rating on Thermo Fisher, with a price target of $632, highlighting the company's potential for earnings per share growth acceleration in 2025. Similarly, Citi maintained a Neutral rating, citing Thermo Fisher's long-term guidance that includes 7-9% organic growth and a capital deployment strategy with a significant portion directed towards mergers and acquisitions.
Deutsche Bank adjusted its outlook on Thermo Fisher, raising the price target to $630 and reducing its 2025 earnings per share estimates by 3% due to a conservative forecast for market recovery. BofA Securities, TD Cowen, and Jefferies also increased their price targets for Thermo Fisher, indicating confidence in the company's future prospects.
Thermo Fisher reported second-quarter revenue of $10.54 billion, leading to an upward revision of its full-year guidance. The company also secured approval for its $3.1 billion acquisition of Swedish biotech firm, Olink Holding AB (NASDAQ:OLK), and declared a quarterly cash dividend of $0.39 per share.
InvestingPro Insights
Following Stifel's optimistic outlook on Thermo Fisher Scientific, real-time data from InvestingPro further substantiates the company's strong market position. With a robust market capitalization of $236.93 billion and a price-to-earnings (P/E) ratio of 38.31, Thermo Fisher reflects a significant presence in its industry. Notably, the company has been trading near its 52-week high, with the price at 98.78% of this peak, signaling investor confidence.
InvestingPro Tips highlight Thermo Fisher's commitment to shareholder returns, as evidenced by its history of consistently raising dividends, with an 11.43% growth in the last twelve months as of Q2 2024. Additionally, the company's management has demonstrated confidence through aggressive share buybacks. For investors looking for stability, Thermo Fisher's low price volatility complements its status as a prominent player in the Life Sciences Tools & Services industry.
For those interested in deeper analysis, InvestingPro offers additional tips on Thermo Fisher, providing a comprehensive view of the company's financial health and market position. The platform currently lists 15 InvestingPro Tips for Thermo Fisher, which can be accessed for more detailed investment considerations.
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