Analyst Daniel Brennan of TD Cowen reiterated a Buy rating on Thermo Fisher, reducing the price target to $625.00.
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Daniel Brennan has given his Buy rating due to a combination of factors that, in his view, make the recent stock pullback excessive relative to Thermo Fisher’s fundamentals. He highlights that the company delivered in-line organic growth, a solid EPS beat, and raised its reported revenue and earnings outlook, while management reaffirmed its full-year organic growth guidance despite challenging market conditions.
He also underscores that investors are underestimating Thermo Fisher’s backlog and visibility in longer-cycle businesses such as PPD, Patheon, Analytical Instruments, and Bioproduction, which are expected to drive a meaningful acceleration in the second half of the year. In addition, he points to benefits from the Clario acquisition and ongoing efficiency improvements as further support for stronger performance ahead, reinforcing his view that the sharp share-price decline is unwarranted and presents an attractive entry point for long-term investors.