Thermo Fisher Scientific (TMO) has grown through several strategic acquisitions and product launches over the last few quarters. The company has strengthened its position in the research and diagnostics technology market space.
According to a Reuters survey of 15 investment research firms, Thermo Fisher Scientific (TMO) is a “buy” according to 14 of the analysts. Of these 14 analysts, eight gave a “strong buy” recommendation on TMO stock. Only one analyst has a “hold” recommendation on the stock, and there were no “sell” ratings on Thermo Fisher Scientific stock.
As of December 22, 2017, TMO stock has an analysts’ consensus 12-month target price of $218.14, representing approximately 14.56% return potential.
Recommendation updates and revisions
On December 4, 2017, Leerink Swan reiterated its “overweight” rating on TMO stock. The investment research firm has a 12-month target price of $200.00 per share on the stock.
Leerink Swan also provided fiscal 2017 estimates for Thermo Fisher Scientific in a recent research report. For details, please read the next article in this series.
On September 26, Goldman Sachs initiated coverage on Thermo Fisher Scientific stock with a “conviction buy” rating and a target price of $225.00 per share. Despite the announcement that Amazon could enter the healthcare industry, Morgan Stanley showed confidence in TMO in October and raised its target price on the stock from $220.00 to $223.00 per share.
Analysts’ recommendations for peers
On December 22, 2017, analysts’ consensus 12-month target prices for Thermo Fisher Scientific’s peers Abbott Laboratories (ABT), Boston Scientific (BSX), and Agilent Technologies (A) were $61.88, $31.18, and $75.29, respectively.
These target prices imply return potentials of approximately 8.7%, 24.2%, and 11.8%, respectively, for an investment in TMO stock over the next 12 months.
Investors seeking diversified exposure to Thermo Fisher Scientific can consider investing in the Vanguard Growth ETF (VUG). VUG holds ~0.68% of its total portfolio in Thermo Fisher Scientific.