Thermo Fisher price target lowered to $505 from $525 at Wells Fargo

Wells Fargo analyst Timothy Daley lowered the firm’s price target on Thermo Fisher to $505 from $525 and keeps an Underweight rating on the shares. The analyst notes that in late 2021, the company upgraded its long-term growth guidance framework by +200bps to 7%-9% and while technically a multi-year average, the market still views this as a hard "bracketed" range and has set 7%-9% as the bogey for 2023. Given his incrementally bearish view on key growth drivers for 2023, Daley sees this as a very aggressive hurdle under the backdrop of Thermo Fisher’s history of consistently setting initial annual guidance with ample headroom for beat/raise progression through the year. His view is the JPMorgan conference will be the capitulation point where management will have to finally talk down these unrealistic expectations.