In a report released today, Brandon Couillard from Wells Fargo maintained a Buy rating on Thermo Fisher (TMO – Research Report), with a price target of $570.00.
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Brandon Couillard has given his Buy rating due to a combination of factors that highlight Thermo Fisher’s strategic positioning and financial prospects. The recent amendment to the agreement with SOLV, which allows Thermo Fisher to exclude the lower-margin Drinking Water Filtration business from the acquisition, is seen as a positive move. This change is expected to simplify the transaction and potentially speed up its completion, while also reducing the purchase price, which enhances the financial attractiveness of the deal.
Moreover, the revised deal is anticipated to be accretive to Thermo Fisher’s earnings per share, even after accounting for financing costs. The exclusion of the Drinking Water business, which is non-core for Thermo Fisher, aligns with the company’s focus on higher-margin and higher-growth opportunities. Overall, these strategic adjustments are expected to bolster Thermo Fisher’s growth trajectory and financial performance, justifying the Buy rating.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $545.00 price target.