Thermo Fisher’s Strong Q3 Performance and Strategic Growth Justify Buy Rating

William Blair analyst Matt Larew has maintained their bullish stance on TMO stock, giving a Buy rating on October 20.

Matt Larew has given his Buy rating due to a combination of factors that highlight Thermo Fisher’s strong financial performance and strategic progress. The company’s third-quarter results exceeded both his and the consensus expectations, with total revenue reaching $11.122 billion, surpassing the estimated $10.894 billion. This growth was primarily driven by the Life Sciences Solutions and Analytical Instruments segments, which showed robust organic growth.
Moreover, Thermo Fisher’s adjusted operating margin of 23.3% was higher than anticipated, contributing to an adjusted EBIT that was 7% above the target and an adjusted EPS of $5.79, exceeding the $5.50 estimate. The company’s effective capital deployment strategy, including recent acquisitions, further supports the positive outlook. These factors collectively suggest that Thermo Fisher is well-positioned for continued recovery and growth, justifying the Buy rating.

Based on the recent corporate insider activity of 69 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.