Thermo Fisher price target lowered to $600 from $625 at Leerink

Leerink lowered the firm’s price target on Thermo Fisher (TMO) to $600 from $625 given lower peer multiples, while keeping an Outperform rating on the shares. The firm notes the company reported Q1 and shares were mixed on the print as management directly addressed a number of questions on tariffs/academic, while assuming existing tariff rates through the remainder of the year. The underlying end-market backdrop remains unchanged with pharma being the number 1 driver, and investors are seeking further clarity/resolution on sectoral tariffs and drug pricing to see if R&D spend can improve. Leerink continues to be structurally positive on Thermo Fisher with the company being a multiyear compounder, consolidator and LST leader serving several key end-markets.