William Blair initiates coverage on Outperform with a distinct Overweight rating.

William Blair initiates coverage on Outperform with a distinct Overweight rating.

William Blair & Company has initiated coverage on Thermo Fisher Scientific (NYSE: TMO) with an Outperform rating, aligning with the broader analyst consensus [1]. The research firm highlights Thermo Fisher's position as the "partner of choice" for the biopharmaceutical industry, citing the company's best-in-class service offerings [1]. With a market capitalization of $184 billion, Thermo Fisher generated $43.2 billion in revenue over the last twelve months, boasting a healthy gross profit margin of 41.3% [1].

Since 2017, Thermo Fisher has made significant acquisitions and organic investments to bolster its biopharma services offerings, which now represent over 60% of its laboratory products and biopharma services (LPBS) revenue [1]. These services currently account for approximately one-third of the company's total sales [1]. While acknowledging near-term constraints in the biopharma market, William Blair expresses confidence in the sector's long-term resilience and attractiveness, supporting their positive outlook on Thermo Fisher [1]. The company trades at a P/E ratio of 28.3, with analyst price targets ranging from $450 to $767 [1].

Recently, Thermo Fisher reported strong financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $5.36, exceeding the forecast of $5.23, and reported revenue of $10.85 billion, higher than the predicted $10.68 billion [1]. Bernstein raised its price target to $570.00, citing robust pharmaceutical R&D channel growth, while HSBC downgraded the stock from Buy to Hold due to concerns about medium-term growth prospects [1]. Stifel adjusted its price target to $583.00, maintaining a Buy rating and highlighting market share gains [1]. Additionally, Thermo Fisher announced the retirement of CFO Stephen Williamson, effective March 31, 2026, with James R. Meyer set to succeed him [1]. Meyer has been with the company since 2009 and has held various finance roles [1].

These developments reflect a dynamic period for Thermo Fisher as it navigates both financial success and leadership transitions. Glenview Capital Management, led by billionaire Larry Robbins, also took new stakes in Thermo Fisher in the second quarter of 2025, according to its 13F filing [2]. The hedge fund increased its holdings in Dick's Sporting Goods, Thermo Fisher, and Surgery Partners, while exiting its

References:
[1] https://www.investing.com/news/analyst-ratings/william-blair-initiates-coverage-on-thermo-fisher-stock-with-outperform-rating-93CH-4198717
[2] https://ca.investing.com/news/analyst-ratings/william-blair-reiterates-outperform-rating-on-affirm-stock-ahead-of-earnings-93CH-4168417