Wells Fargo Reaffirms 'Buy' Rating on Thermo Fisher Scientific Amid Strong Growth Across Key Segments

Wells Fargo reaffirms its "Buy" rating on Thermo Fisher Scientific Inc. (NYSE:TMO) due to the company's strong momentum across several key business segments, including Pharma Services, Bioproduction, and Research/Safety Channel. The analyst acknowledges softness in the Analytical Instruments segment but believes Thermo Fisher's diversified portfolio and increasing market share will drive its growth.

Wells Fargo has reaffirmed its "Buy" rating on Thermo Fisher Scientific Inc. (NYSE:TMO), citing strong momentum across several key business segments, including Pharma Services, Bioproduction, and Research/Safety Channel. The analyst acknowledges some softness in the Analytical Instruments segment but remains optimistic about Thermo Fisher's diversified portfolio and increasing market share to drive its growth [2].

The recent strategic co-marketing agreement between Syncell Inc. and Thermo Fisher Scientific highlights the company's innovative approach to spatial proteomics, integrating Syncell's proprietary Microscoop® technology with Thermo Fisher's ultra-sensitive Orbitrap® mass spectrometers. This collaboration aims to deliver high-resolution spatial proteomics workflows, enabling researchers to investigate protein locations and organization across tissues and cells without relying on predefined targets [1].

In addition to this strategic partnership, Thermo Fisher Scientific has seen significant developments with the recent FDA approval of its Oncomine Dx Target Test as a companion diagnostic for HERNEXEOS. This approval has contributed to a positive price movement of 7.8% over the last quarter, positioning the company favorably within the precision medicine sector [3]. The approval and subsequent product launches could enhance revenue and earnings forecasts, bolstering confidence in the company's growth trajectory.

Despite some challenges in the Analytical Instruments segment, Thermo Fisher Scientific's diversified portfolio and increasing market share in other segments are expected to drive its growth. Analysts forecast annual revenue growth of 4.8% and anticipate earnings reaching US$8.9 billion by 2028. The current share price of US$462.39 remains below the consensus price target of US$550.28, implying potential upside as the firm executes on its initiatives within high-growth areas [3].

References:
[1] https://www.marketscreener.com/news/syncell-inc-announces-strategic-co-marketing-agreement-to-advance-high-resolution-spatial-proteomi-ce7c51d9dc81f222
[2] https://www.marketbeat.com/stocks/NYSE/TMO/
[3] https://simplywall.st/stocks/us/pharmaceuticals-biotech/nyse-tmo/thermo-fisher-scientific/news/thermo-fisher-scientific-tmo-oncomine-dx-test-gains-fda-appr