Wells ups Thermo Fisher to Equal Weight with ‘bear thesis boxes finally checked’

Wells Fargo upgraded Thermo Fisher to Equal Weight from Underweight with a price target of $475, down from $520, arguing that that post-pandemic expectations and structural changes in the business that justify a lower valuation are “now fairly appreciated” following the company’s FY24 update and “soft walkback” from its previously communicated FY25 guidance. The “unreasonable” three-year CAGR 7%-9% growth target to FY25 had been reiterated as recently as last month, but, “while not explicitly stating that the long-term framework is off the table,” management’s commentary from today’s earnings call “effectively did so,” the analyst tells investors in a post-earnings note.