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Most Analysts Recommend ‘Buys’ on Thermo Fisher Scientific

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Analysts’ recommendations

Thermo Fisher Scientific (TMO) is a leading provider of laboratory equipment and services in the United States. The company has witnessed significant growth in recent years led by innovation and its inorganic growth strategy. Let’s take a look at analysts’ latest recommendations and target prices for the company over the next 12 months.

In a recent Reuters survey of 17 brokerage companies, Thermo Fisher Scientific received “buy” ratings from ~88% of analysts, while ~12% gave it “hold” ratings. The company didn’t receive “sell” ratings from any of the brokerages.
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The stock’s consensus 12-month target price is $188, which represents a return potential of ~5.2% compared to its closing price of $178.6 on July 11, 2017.

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Target prices

According to Wall Street analysts’ recent recommendations, the lowest 12-month target price for Thermo Fisher Scientific is $140, representing a potential downside of ~21.6%. The company’s highest 12-month target price is $194, which signifies an upside potential to the tune of 8.6% over the next 12 months.

In May 2017, investment banking company Cantor Fitzgerald initiated coverage on Thermo Fisher Scientific with an “overweight” rating and a target price of $194. Deutsche Bank initiated coverage on TMO stock in January 2017. The company has a “buy” rating and a target price of $188 on the stock.

Peers and ETFs

Peers Medtronic (MDT), Becton, Dickinson and Company (BDX), and Abbott Laboratories (ABT) have average analyst target prices of $92.4, $194.1, and $51.1, respectively. These figures imply potential returns of 4.9%, -1.9%, and 6%, respectively, over the next 12 months.

Investors looking to gain exposure to Thermo Fisher Scientific while avoiding company-specific risks can consider the Vanguard S&P 500 ETF (VOO). TMO accounts for ~0.33% of VOO’s total holdings. VOO tracks the performance of the S&P 500 Index.

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