UBS Raises PT on Thermo Fisher (TMO) as Potential Life Tech (LIFE) Takeout Looms

April 4, 2013 11:43 AM EDT Send to a Friend
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Price: $117.90 +1.44%

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UBS today maintained a Buy rating on Thermo Fisher Scientific (NYSE: TMO) and raised its price target to $87.00 (from $79.00). Analyst Daniel Arias made positive comments on Thermo Fisher Scientific potential takeout of Life Technologies (Nasdaq: LIFE).

"We continue to believe strategic considerations & size represent challenges, but see a deal as financially attractive for TMO in the $65-70/share range. Our M&A model yields 12% accretion in ‘14 & 14% in ‘15, which assumes a deal at $70/share (~12x EV/EBITDA) using issued debt (75%) & equity (25%) and which allows for $555m (3% of combined sales) in synergies over 3 years," said Arias.

Thermo Fisher is rumored to be the leader in the ongoing Life Tech auction.

For an analyst ratings summary and ratings history on Thermo Fisher Scientific (NYSE: TMO) click here. For more ratings news on Thermo Fisher Scientific click here.

Shares of Thermo Fisher Scientific closed at $78.10 yesterday.


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