William Blair analyst Matt Larew has reiterated their bullish stance on TMO stock, giving a Buy rating yesterday.
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Matt Larew has given his Buy rating due to a combination of factors surrounding Thermo Fisher’s strategic acquisition of Clario. This acquisition is expected to enhance Thermo Fisher’s position in the biopharma industry by integrating Clario’s endpoint data solutions with its existing pharma services, particularly in the contract research organization (CRO) sector.
The deal is financially beneficial as it is immediately accretive to Thermo Fisher’s operating margin and is projected to add $0.45 to adjusted EPS in the first year post-acquisition. Furthermore, Thermo Fisher anticipates significant revenue synergies, aiming to generate about $175 million in adjusted operating income by the fifth year. This strategic move is expected to drive high single-digit annual growth for Clario under Thermo’s ownership, making it a compelling investment opportunity.
Larew covers the Healthcare sector, focusing on stocks such as Thermo Fisher, AptarGroup, and Amedisys. According to TipRanks, Larew has an average return of 0.2% and a 47.76% success rate on recommended stocks.
In another report released yesterday, Argus Research also maintained a Buy rating on the stock with a $610.00 price target.