Thermo Fisher (TMO) Receives Upgrade from Scotiabank with Optimistic Price Target

Scotiabank has upgraded Thermo Fisher (TMO) to Outperform with a price target of $590. The average target price from 27 analysts is $548.89, implying a 27.43% upside. The average brokerage recommendation is 2.0, indicating "Outperform" status. The estimated GF Value for TMO in one year is $588.09, suggesting a 36.53% upside.

Scotiabank has upgraded Thermo Fisher Scientific (TMO) to Outperform with a new price target of $590, reflecting a positive outlook on the company's future prospects. This upgrade comes after the bank reviewed the latest financial performance and market conditions, leading to a slight adjustment in its price target from $605 to $590 [1].

The average target price from 27 analysts stands at $548.89, suggesting an implied upside of 27.43% from the current price of $430.73. This consensus is backed by a brokerage recommendation average of 2.0, indicating an "Outperform" status across 31 firms [1]. Additionally, GuruFocus estimates the GF Value for TMO in one year to be $588.09, implying a potential 36.53% upside from the current price [1].

Thermo Fisher Scientific reported strong Q1 2025 financials, with revenue of $10.36 billion and adjusted EPS of $5.15 per share, up 1% year-over-year. The company also launched several innovative products, such as the Thermo Scientific Vulcan Automated Lab and the next-generation Thermo Scientific Transcend, enhancing its market leadership [2]. Despite these positive developments, the company faced revenue declines in the Academic and Government segment due to macroeconomic conditions in the US and China, as well as a 3% headwind from the combined impact of two fewer selling days and pandemic-related revenue runoff [2].

Scotiabank cited Thermo Fisher’s "unparalleled commercial scale" and anticipated enhanced region-for-region capabilities by 2026 as key factors supporting the company’s ability to reaccelerate growth once concerns around potential U.S. healthcare policy changes subside. The firm also highlighted Thermo Fisher’s innovation leadership, operational execution, and cash flow potential as strengths positioning the company favorably in the life science tools industry [2].

In other recent news, Thermo Fisher Scientific received FDA approval for its Oncomine Dx Express Test on the Ion Torrent Genexus Dx Integrated Sequencer, which is now authorized as an in vitro diagnostic and as a companion diagnostic for Dizal’s ZEGFROVY. This approval brings rapid next-generation sequencing closer to patients, delivering crucial genomic results in as little as 24 hours [3].

References:
[1] https://www.gurufocus.com/news/2971629/thermo-fisher-tmo-receives-upgrade-to-outperform-with-revised-price-target--tmo-stock-news
[2] https://www.investing.com/news/analyst-ratings/thermo-fisher-scientific-stock-rating-upgraded-by-scotiabank-to-sector-outperform-93CH-4132194
[3] https://finance.yahoo.com/news/fda-approved-thermo-fisher-scientific-073537758.html