UBS Maintains a 'Buy' on Thermo Fisher (TMO); Academic Weakness Trips Up TMO, Too

UBS maintains a 'Buy' on Thermo Fisher Scientific (NYSE: TMO) price target lowered from $72 to $60.

UBS analyst says, "While 3Q EPS of $1.07 was in-line with consensus, revs came in slightly under the Street, with organic growth of 3% below our 4% on a -7% delta between TMO’s academic spending expectations & actual results. Given mgmt’s belief that academic softness will persist in 4Q and that F/X will contribute less to full-year revs, top & bottom line guidance for ’11 have been lowered. Additionally, TMO is no longer backing the initial 5% organic growth target for ‘12 set forth in May."

"We forecast 2.5% organic sales growth in 4Q &3 % (down from 5%) ‘12: Total sales in ’11 are now forecast to be $11.62-11.7B, down $180M at the midpoint. FY11 EPS guidance is now $4.11-4.17, down from $4.15-4.25. We project ‘11 sales of $11.66B (~10%; +2.5% organic) & EPS of $4.13 (was $4.23). We estimate ‘12 sales of $12.73B (+8%; +3% organic) & EPS of $4.75 (was $5.00)."

For more ratings news on Thermo Fisher Scientific click here and for the rating history of Thermo Fisher Scientific click here.

Shares of Thermo Fisher Scientific closed at $48.36 yesterday.

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