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Wells Fargo maintained a Buy rating on Thermo Fisher Scientific(TMO)

investing ideas :: 6hrs ago :: source - insider monkey

By Talha Qureshi

Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the 11 Best 52-Week Low Stocks to Buy Right Now. On June 26, Brandon Couillard from Wells Fargo maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) with a price target of $570.

Analyst Brandon Couillard noted the recent Amendment to the acquisition deal with Solventum Corp (NYSE:SOLV). The revised agreement excludes Solventum’s lower-margin Drinking Water Filtration business from the acquisition, reducing the purchase price from about $4.1 billion to $4.0 billion. Couillard believes that this simplifies the transaction and also potentially accelerates its closing by the end of 2025, while improving the financial attractiveness of the deal.

Wells Fargo maintained a Buy rating on Thermo Fisher Scientific (TMO)

A workstation in a research lab stocked with laboratory products and services.

The deal revision is expected to be accretive to Thermo Fisher Scientific Inc.’s (NYSE:TMO) earnings per share even after accounting for financing costs. The exclusion of the non-core Drinking Water business aligns with the focus of the company on higher-margin, higher-growth segments, supporting stronger earnings growth.

In addition, Thermo Fisher Scientific Inc. (NYSE:TMO) has demonstrated consistent quarter-over-quarter improvement in core growth, with expectations of about 5% core growth in 2025. Moreover, its long-range plan aims to achieve robust organic growth of 7% to 9%, significant operational margin expansion, and double-digit growth in operating profits.

Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading company in the life sciences and diagnostics industry.

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Disclosure: None.