Thermo Fisher Scientific (TMO) PT Raised to $477 at Needham & Company After Positive Preannouncement

Needham & Company analyst Stephen Unger raised the price target on Thermo Fisher Scientific (NYSE: TMO) to $477.00 (from $468.00) after the company released preliminary 3Q20 revenue, anticipating exceptionally strong organic growth of ~24% (vs. 11% in 2Q20).

The analyst reiterated the Buy rating, stating "We were expecting 15% organic growth (reported revenues of $7.225B) and calculate the upside at ~$565M. The upside was attributed to a continuation of strong global sales of PCR-based tests (and other products/services) supporting COVID-19 response, which is expected to contribute ~$1.6B of revenue (vs. ~$1.1B previously expected). In addition, TMO expects to generate $1.0-1.6B of COVID-19 response revenue in 4Q20. We are revising our financial forecast for TMO, raising our adj. EPS estimates for 3Q20 ($3.96 to $4.60) and 4Q20 ($4.02 to $4.80), which brings full-year 2020 to $16.23 (over 30% growth). For 2021, we are now expecting adj. EPS of at least $17.53 (8% growth) on at least 6% organic revenue growth".

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