Thermo Fisher initiated with an Overweight at Stephens

Stephens initiated coverage of Thermo Fisher with an Overweight rating and $680 price target. While acknowledging that it has been “a difficult 18+ months” for the broader life sciences tools and services space as biotech funding, large pharma spend, bioprocessing destocking, and China have all represented headwinds, the firm contends that “many of these are abating,” which should position the space for a better 2025. The firm’s “working theory is 2025 is a good but not great year for the broader space,” but it believes the long-term outlook for the space remains bright, adding that it seems the group is “emerging from the bottom of the cycle.”