BUZZ - Broker Opinion: Thermo Fisher benefits from biopharmaceutical recovery and strong momentum in the Chinese market

October 22 - ** Thermo Fisher Scientific (TMO.N) reported third-quarter earnings (link) on Wednesday that exceeded analysts' expectations, thanks to strong growth in demand for its life sciences instruments as biotechnology companies increase investments in R&D and production.

** According to data compiled by London Stock Exchange Group (LSEG), an average of 26 analysts rate TMO stock as “Buy”, with a median target price of $735.

Broader recovery in the life sciences market

** William Blair (“Outperform” rating) states that there are enough positive data points to support the argument for a market recovery.

** Evercore (“Outperform”, target price: $720) states the biotechnology market is improving, and customers expect research reagent spending to increase in the coming quarters.

** Leerink Partners (“Outperform”, target price: $735) says “TMO is well positioned and could achieve the high end of its 3%-6% organic growth target range.”

** RBC Capital Markets (rating “Sector Perform”, target price: $730) points out that TMO’s revenue growth in China has accelerated to low double digits, suggesting that a recovery led by biopharmaceuticals is gaining strength.

** Jefferies (“Buy”, target price: $785) notes that TMO's contract pharmaceutical business saw significant growth, although some of this was due to work originally slated for the fourth quarter being completed ahead of schedule in the third quarter.

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