Healthcare Sector Ideas

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Thermo Fisher Scientific (TMO) - >>> An important player in the field of laboratory research.


https://finance.yahoo.com/news/end-bear-market-may-sight-204211341.html


Thermo Fisher is a maker and supplier of laboratory equipment – scientific instruments, chemicals and reagents, sampling and testing supplies, and even lab-related software systems. Thermo Fisher works with a broad customer base, serving any clients in any field involving lab work; the company frequently deals with academics, medical researchers, and government entities.

While Thermo Fisher occupies a highly particular niche, supplying research labs has been profitable in the post-pandemic world. The company’s 4Q22 results saw both the top and bottom line beat expectations, even if they did not expand year-over-year. At the top line, the quarterly revenue of $11.45 billion was a full $1.04 billion above the forecast, while at the bottom line the non-GAAP EPS of $5.40 was 20 cents ahead of consensus estimates.

Thermo Fisher caught the eye of Morgan Stanley analyst Tejas Savant who writes: “We like TMO for the breadth of its portfolio, diversified customer base and scale – attributes that we believe will prove advantageous in navigating a potential recession, in addition to inflationary pressures and geopolitical uncertainty. TMO’s favorable end market exposure, PPI business system, and track record of consistent all-weather execution underpin our confidence in management’s long-term core organic growth target of 7- 9% with mid-teens EPS growth.”

Unsurprisingly, Savant rates TMO shares an Overweight (i.e. Buy), while his $670 suggests the stock will grow 19% in the year ahead. (To watch Savant’s track record, click here)

Overall, this stock has picked up 14 recent analyst reviews, and these include 12 Buys that overbalance 1 Hold and 1 Sell for a Strong Buy consensus rating. The stock’s average price target of $656.71 implies ~17% one-year gain from the current share price of $561.69.

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