Analyst Michael Ryskin from Bank of America Securities maintained a Buy rating on Thermo Fisher (TMO – Research Report) and keeping the price target at $545.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Michael Ryskin has given his Buy rating due to a combination of factors, primarily focusing on Thermo Fisher’s strategic moves and financial positioning. The company is reportedly planning to divest parts of its diagnostics business, including the microbiology unit, which could streamline its portfolio by shedding lower-growth assets. This potential sale, estimated at around $4 billion, is expected to enhance Thermo Fisher’s organic growth and better position it amidst market uncertainties.
Furthermore, the divestment could pave the way for Thermo Fisher to pursue other strategic acquisitions, such as BDX’s Life Sciences unit, by alleviating potential anti-trust concerns. Despite the surprise of this divestment given Thermo Fisher’s strong balance sheet and cash flow generation, these strategic maneuvers are seen as positive steps towards maintaining its competitive edge and achieving long-term growth, justifying the Buy rating.
Ryskin covers the Healthcare sector, focusing on stocks such as Thermo Fisher, Agilent, and Danaher. According to TipRanks, Ryskin has an average return of 1.6% and a 52.67% success rate on recommended stocks.
In another report released on June 5, RBC Capital also maintained a Buy rating on the stock with a $569.00 price target.
Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.
Report an Issue