Thermo Fisher Scientific Receives Positive Analyst Rating from William Blair

William Blair has initiated coverage on Thermo Fisher Scientific (TMO) with an "Outperform" rating, adding to the growing consensus among analysts. The firm operates through four segments, including analytical technologies, specialty diagnostic products, life science solutions, and lab products and services. Analysts forecast an average target price of $550.31, implying a 12.87% upside from the current price of $487.54.

William Blair has initiated coverage on Thermo Fisher Scientific (TMO) with an "Outperform" rating, adding to the growing consensus among analysts. The firm operates through four segments, including analytical technologies, specialty diagnostic products, life science solutions, and lab products and services. Analysts forecast an average target price of $550.31, implying a 12.87% upside from the current price of $487.54 [2].

Thermo Fisher Scientific, a global leader in serving science, provides cutting-edge technologies, services, and solutions that drive research and enhance healthcare. The Waltham, Massachusetts-based company has been the subject of strong analyst interest, with 7 research reports in the past 90 days [1]. Analysts have given the company a consensus rating of Moderate Buy, with 17 buy ratings, 4 hold ratings, and no sell ratings [1].

The company's earnings are expected to grow by 9.79% in the coming year, from $23.28 to $25.56 per share [1]. However, the company's P/E ratio of 26.09 is higher than the market average of about 21.38 and the Medical sector average of about 21.69 [1]. The PEG Ratio of 2.99 indicates that the company could be overvalued, while the P/B Ratio of 3.32 suggests the same [1].

Despite recent underperformance, shares of TMO have shown signs of improvement. Short interest has decreased by 7.73%, indicating that investor sentiment is improving significantly [1]. The company's dividend yield of 0.39% is in the bottom 25% of all stocks that pay dividends, but the dividend payout ratio of 10.41% is at a healthy, sustainable level [1].

Analysts point to the company's strong balance sheet and impressive M&A track record as reasons for optimism. William Blair models $27.17 of EPS in 2027, with the company's multiple improving from near lows to roughly 22 times, yielding a share price of roughly $598 at the end of 2026 [2]. The analyst sees Thermo's broad scale and partner-of-choice status in pharma and biotech positioning it to gain market share and emerge stronger from near-term challenges [2].

Thermo Fisher Scientific reported second-quarter 2025 adjusted earnings of $5.36 per share, beating the street view of $5.23. Quarterly sales of $10.86 billion increased 3% year-over-year, beating the analyst consensus estimate of $10.68 billion. Organic revenue growth was 2% [3]. Among the 26 analysts covering the stock, the consensus rating is a “Strong Buy,” based on 18 “Strong Buy” ratings, three “Moderate Buys,” and five “Holds” [3].

References:
[1] https://www.marketbeat.com/stocks/NYSE/TMO/
[2] https://www.benzinga.com/analyst-stock-ratings/initiation/25/08/47219876/thermo-fisher-positioned-as-biopharmas-partner-of-choice
[3] https://finance.yahoo.com/news/wall-street-bullish-bearish-thermo-105537609.html