Daniel Brennan, an analyst from TD Cowen, maintained the Buy rating on Thermo Fisher (TMO – Research Report). The associated price target was lowered to $570.00.
Daniel Brennan’s rating is based on a combination of factors that suggest a positive outlook for Thermo Fisher. Despite challenges such as US-China tariffs and weaker US academic and government spending, the company has implemented cost mitigation measures that are expected to moderate the impact on earnings per share (EPS) by 2026. This sets the stage for a potential recovery year.
Additionally, while the stock has been trading modestly up, the management’s actions to address the $0.70 EPS headwind from tariffs and the belief that the worst-case impact has been accounted for provide upside potential. The company’s positioning on the production side and the likelihood that Pharma will not significantly cut R&D spending further support the Buy rating. Brennan also notes that the price target has been adjusted to $570, reflecting a potential 30% upside, assuming improvements in macroeconomic conditions and positive estimate revisions.
In another report released on April 17, Leerink Partners also maintained a Buy rating on the stock with a $625.00 price target.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TMO in relation to earlier this year.