Do Analysts See Any Upside for Thermo Fisher Stock?


Dec. 30 2018, Updated 12:06 p.m. ET

Analysts’ recommendations

Of the 17 analysts covering Thermo Fisher Scientific (TMO), 14 recommend ” buy” or a higher rating, and three recommend “hold.” Their mean rating for Thermo Fisher stock is 1.76, and their target price is $266.07, implying a 24.4% upside for the stock based on its December 26 trading price of $213.80.

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Peers’ ratings

In comparison, peers Intuitive Surgical (ISRG), Johnson & Johnson (JNJ), and Waters (WAT) have received mean ratings of 2.0, 2.32, and 2.94 respectively, from analysts, and target prices of $584.44, $148.17, and $192.60.

Thermo Fisher’s current ratio, which shows how effectively it can meet its short-term obligations, is 1.80x. In comparison, Intuitive Surgical, Johnson & Johnson, and Waters have current ratios of 6.0x, 1.70x, and 6.60x, respectively.

Stock performance

After rising from $198.73 on February 8 to a high of $251.98 on December 3, Thermo Fisher stock corrected to $208.47 on December 24. With strong market gains on December 26, the stock has recovered by 4% to $216.60.

Thermo Fisher’s long-term debt-to-equity ratio is 0.66x, whereas peers Amgen (AMGN), Johnson & Johnson, and Waters have debt-to-equity ratios of 2.05x, 0.46x, and 0.61x, respectively.

In fiscal 2018 and 2019, Thermo Fisher’s free cash flow is expected to be $3.71 billion and $4.43 billion, respectively, compared with $3.5 billion in fiscal 2017. Its price-to-free-cash-flow ratio is 23.64x, while Intuitive Surgical, Johnson & Johnson, and Waters have ratios of 51.70x, 40.11x, and 24.14x, respectively.


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