Thermo Fisher Scientific (TMO) PT Lowered to $625 at TD Cowen
TD Cowen analyst Dan Brennan lowered the price target on Thermo Fisher Scientific (NYSE: TMO) to $625.00 (from $683.00) while maintaining a rating.
The analyst commented: " TMO is our top pick where 1Q guide is reasonable, the co is positioned well for a broader R&D recovery, mgmt tone is bullish, and TMO looks set to beat forecasts.
We see room for a modest 1Q organic beat vs. the 1% organic guide (which reflects a (1.8%) drag from the combo of 1 fewer days and planned customer shutdown; hence ~2.8% ex these). 2-year stacked comps reflect a (1%) deceleration Q/Q (against the 2.8% 1Q estimate) hence arguably conservative. TMO's tone at our March conference was quite optimistic about 1Q & 2026 demand/trends. Management's guidance philosophy for '26 included starting off at the lower end of the full-year guide (3-4%), with optimism that quarterly strength will drive total organic growth higher within the range for the year. The company seemed comfortable with the 1Q guide, which also reflects operating margin down Y/Y, with 1Q the low point for EPS growth. We raised our EPS forecast to $5.21 from $5.05 to better reflect guidance. The extent to which pharma strength has continued (with any preclinical improvement an upside driver) will be key to watch to support the 2H organic growth ramp (where stacks accelerate) - TMO factored in weak US A&G, which at this point seems appropriate (our bias remains to the upside here for '26, given TMO's consumable-skewed mix). We believe the company was comfortable with our organic growth pacing through '26 (we are largely in-line with cons.). We also look for detail on PPD, where strong bookings were noted at 4Q:25 & comments reflect risks of AI displacement are overblown. We lower our PT to $625 (from $683) based upon 22x NTM P/E (vs. 25x prior) given compression in the broader market valuation (22x is ~1.35x the S&P equalweight index, in line with LT average). With stock's valuation near 10-year lows, end markets stable to improving, & TMO's tone quite confident about '26, the setup appears favorable."