Bernstein raises Thermo Fisher stock rating, sees 16% upside

EditorEmilio Ghigini
Published 01/10/2025, 09:02 PM
TMO
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On Friday, Thermo Fisher Scientific (NYSE:TMO) received an upgrade in its stock rating from Bernstein SocGen Group, moving from Market Perform to Outperform. Accompanying the upgraded rating, the firm set a new price target for the company at $630, indicating a potential 16% upside from its previous target.

Currently trading at $544.93 with a market capitalization of $208.4 billion, InvestingPro analysis indicates the stock is trading above its Fair Value, with analysts setting targets ranging from $585 to $767.

Bernstein SocGen Group's analysts highlighted Thermo Fisher's relatively lower preclinical exposure compared to its peers, which they believe positions the company favorably. The firm anticipates that Thermo Fisher's focus on later-stage research and production-related revenue streams, such as contract research organization (CRO), contract development and manufacturing organization (CDMO), and bioprocessing, could lead to outperformance in the year 2025.

InvestingPro data shows the company maintains strong financial health with a GOOD overall score, and notably exhibits low price volatility with a beta of 0.77.

The analysts expressed a positive outlook on Thermo Fisher's prospects, despite acknowledging that purchasing shares ahead of the fiscal year 2025 guidance could be challenging for investors. They noted that making such an investment decision would require "a strong stomach and a high risk tolerance."

According to InvestingPro, which offers 12 additional key insights about TMO, the company has demonstrated consistent performance with maintained dividend payments for 13 consecutive years and strong profitability metrics.

The upgrade reflects Bernstein SocGen Group's confidence in Thermo Fisher's ability to navigate the market and leverage its specialized services to achieve growth in the coming year. The new price target of $630 represents a significant increase from the previous target and underscores the firm's expectation for Thermo Fisher's stock performance.

Investors are now watching Thermo Fisher Scientific's progress as the company continues to operate in the dynamic biotechnology and pharmaceutical services market. With the upgraded rating and new price target, Thermo Fisher's stock could attract increased attention from the investment community.

"In other recent news, Thermo Fisher Scientific has reported a robust third-quarter performance, posting a revenue of $10.6 billion and an adjusted earnings per share (EPS) of $5.28. The company has also raised its full-year adjusted EPS guidance to a range of $21.35 to $22.07, while maintaining its revenue forecast within the range of $42.4 billion to $43.3 billion.

In addition to these financial achievements, Thermo Fisher has completed a $1 billion stock repurchase and announced a new $4 billion stock repurchase program. These developments are part of Thermo Fisher's ongoing strategy to deliver value to its shareholders. The company has also declared a quarterly cash dividend of $0.39 per common share, further extending its shareholder-focused activities.

In terms of analyst insights, RBC Capital Markets lowered its price target for Thermo Fisher shares to $692 from $711, while Baird adjusted its price target to $622 from $632. Both firms maintain an Outperform rating on Thermo Fisher's stock. These recent developments underline Thermo Fisher's ongoing efforts to meet its long-term goals amid market uncertainties."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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