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UBS Maintains a 'Buy' on Thermo Fisher Scientific (TMO); Sequential Improvement, Solid Results

February 2, 2012 12:31 PM EST
TMO Hot Sheet
Rating Summary:
    6 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 26
UBS maintains a 'Buy' on Thermo Fisher Scientific (NYSE: TMO) price target raised from $60 to $62.

UBS analyst says, "Revenues of $3,133M (+15%) beat consensus & UBSe, as Q1 organic sales growth of 5% was above our 3% estimate. Operating margins were up 100 bps to 18.9% on pull-through on organic sales, productivity initiatives, & cost actions, and EPS of $1.18 beat UBSe/Street $1.15. Overall 4Q was solid, marked by modest qtr-over-qtr improvement in academic spending. With end-market trends appearing somewhat stable (for now) we believe valuation for TMO (11.5x ’12E EPS vs. ~15x for the group) continues to be compelling, and we remain Buy-rated on the shares."

"We project ‘12 sales of $12,262M (+4.6%; ~3% org, -3.5% F/X, +5.5% M&A) & EPS of $4.74 (was $4.76). We project ‘13 sales of $12,722M (+4%) & EPS of $5.29 (was $5.34)."

For an analyst ratings summary and ratings history on Thermo Fisher Scientific click here. For more ratings news on Thermo Fisher Scientific click here.

Shares of Thermo Fisher Scientific closed at $54.71 yesterday, with a 52 week range of $43.06-$65.86.


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