Citi Resumes Thermo Fisher Scientific (TMO) at Neutral

Citi analyst Patrick Donnelly resumes coverage on Thermo Fisher Scientific (NYSE: TMO) with a Neutral rating and a price target of $620.00.

The analyst comments "We resume coverage of TMO after a period of Rating Suspended with a Neutral rating and target price of $620, as we see current valuation as fair. We see the current 2024 guide of core organic growth between (1%) - +1%, adjusted OPM between 22.3-22.8% and EPS between $20.95-22.00 as a reasonable starting point with limited upside to numbers given the implied 2H margin ramp. In terms of cadence, TMO expects organic revenue growth in 1Q24 to be better than 4Q23 by ~1-2pts, with moderate growth in 2H. 1Q OPMs are expected to be under 21% given incentive comp headwinds. While we continue to view TMO as a well-entrenched diversified player and believe management has mostly de-risked this year (not expecting any China improvement), given the recent multiple expansion and our 2025 numbers below consensus, we establish a Neutral rating. We update our model to include 4Q and 2024 guidance."

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 $584.15 yesterday.

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