Thermo Fisher Rated Buy on Broad-Based Recovery, Conservative Guidance, and Attractive Valuation Versus Peers
Complete. Here is the key summaryWilliam Blair analyst Matt Larew maintained a Buy rating on Thermo Fisher (TMO), citing broad-based Q2 recovery, conservative guidance, and attractive valuation. The firm highlights durable growth drivers in previously weak segments like biotech and China, supported by controllable operational levers. Valuation is near long-term averages and below peers, with expectations for mid-single-digit organic growth and double-digit EPS expansion by 2027. Bank of America also maintained a Buy rating with a $650 price target.
William Blair analyst Matt Larew has maintained their bullish stance on TMO stock, giving a Buy rating yesterday.
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Matt Larew has given his Buy rating due to a combination of factors that point to a durable recovery at Thermo Fisher. The company delivered a broad-based second-quarter outperformance across segments, customer types, and regions, and management raised full-year guidance more than the size of the beat while setting balanced expectations for the rest of the year, avoiding reliance on an aggressive late-year surge.
Previously weak end-markets such as biotech, academic/government, and China returned to growth and are backed by improving demand drivers, yet the company’s outlook only modestly embeds these tailwinds and instead leans on controllable levers like LPBS execution and recent integrations. Larew also highlights that Thermo Fisher’s valuation sits roughly in line with its long-term average and at a discount to life science tools peers, while the firm targets mid-single-digit organic growth and double-digit EPS expansion that he expects can be exceeded by 2027, supporting an Outperform recommendation.
Larew covers the Healthcare sector, focusing on stocks such as Thermo Fisher, Option Care Health, and Repligen. According to TipRanks, Larew has an average return of 10.0% and a 53.13% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $650.00 price target.