From Briefing at 10:22 this a.m.
Thermo Fisher: Goldman adds to Conviction Buy List; valuation discount is unwarranted (611.38 +3.15)
Analyst Matthew Sykes added, "We are adding Buy rated TMO to the Conviction List with a $690 price target representing 13% upside from current levels. We believe that TMO's 3-turn valuation discount to the sector is unwarranted for 3 main reasons: 1) we now have strong confidence the company can hit HSD growth, a material step up from their historical growth rate, a level we see as highly achievable and above sector peers, 2) TMO is experiencing multiple growth drivers across their end markets from robust funding in biopharma and academic/government, a cyclical rebound in industrial and continued pent up demand for their instrumentation, and 3) TMO is organically building a highly competitive bioprocessing business experiencing strong growth rates at highly accretive margins."
Businesses aren't really comparable due to scale, but positive note on bioprocessing should relate to CDMO too. About the time this note came out, CDMO started to leak higher.
Regards,
WH
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