Thermo Fisher's Strong Q4 Performance and Strategic Guidance Justify Outperform Rating and Target Price IncreaseWe believe that 3-4% organic growth with 90bps of margin expansion is a reasonable guide for FY25, with some potential upside. When we upgraded the beginning of the month we said there was some risk around their 2025 guide, as the company had to strike a very careful balance: On the one hand, investors had to believe that Thermo was setting a low bar, as the stock “works’ when it can beat and raise throughout the year. On the other hand, the company couldn’t be too cautious in its guide and risk kicking off a new round of existential questions about the sector (which, to some extent, Danaher - not covered - did on Wednesday before dropping 10%). We believe they were able to thread that needle perfectly, and we think the stock reaction of +7% was warranted.