BTIG Upgrades Thermo Fisher Scientific (TMO) to Buy

BTIG transferred coverage and upgraded Thermo Fisher Scientific (NYSE: TMO) from Neutral to Buy with a price target of $180. Analyst Karen Koski thinks 2016 will be a solid year for the company.

"We view TMO as an incredibly well run company that will continue to grow sales above end‐market growth rates, generate OM leverage via productivity enhancements and synergy capture, and deliver EPS growth above “peers“. Though we acknowledge the recent run in shares (+~10% YTD vs. +~6% for the S&P) to an all-time high and would have preferred a better entry point, we believe shares will continue to outperform the broader market over the next 12 mos," said Koski.

The analyst added, "We expect the biopharma end market (~30% of sales), where TMO’s breadth should continue to provide differentiation, to remain a source of strength for tools near-term. Within academic and government, the recent NIH funding boost and a relatively stable outlook for funding in Europe could provide upside from last year’s low-single digit growth rate. Lastly and despite tougher comps, we note that 2Q16 results to date are supportive of sustainable growth in utilization driven by the ACA in the U.S. and increased access to healthcare in emerging markets."

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 $156.20 yesterday.

You May Also Be Interested In

• Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
• DA Davidson Starts Everus (ECG) at Buy
• Wells Fargo Upgrades Portland General Electric Company (POR) to Overweight