Bernstein on Thermo Fisher Scientific (TMO): 'Buy the Strength'; PT Raised

Bernstein SocGen Group analyst Eve Burstein raised the price target on Thermo Fisher Scientific (NYSE: TMO) to $570.00 (from $560.00) while maintaining an Outperform rating.

The analyst commented: "Buy the strength; Despite the uncertainty in the environment from MFN, tariffs, and other factors, pharma R&D is holding solid. Before the quarter we wrote that we were more bullish on the sector now than we were in 2024, but the one thing holding us back from pounding the table was a solid quarter or two of pharma R&D consumables to prove that R&D wasn’t getting cut amidst uncertainty. Now, we have that reassurance: per our company call-back, the channel (which is largely pharma R&D consumables) grew ~MSD in the quarter.

The stock had its best one-day gain since March 2020 (+9.1%) - but we believe you should buy the strength for 4 reasons: 1) We gained greater certainty that pharma companies aren’t making major R&D cuts in the face of increased macro uncertainty. 2) CROs have ripped over the last 36 hours, but we argue there is more room to run here, and PPD is 15% of Thermo’s revenue. 3) Thermo’s stock has always worked best when they can beatand-raise, and with this setup they can. 4) Longer-term, Thermo will continue to benefit from several unique advantages (e.g., its #1 position in fill-finish capacity in the US; its Accelerator program and ability to gain share by combining CDMO and CRO services; etc.)."

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