Zacks Investment Research Lowers Thermo Fisher Scientific (TMO) to Hold

Thermo Fisher Scientific (NYSE:TMO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “Thermo Fisher ended the first quarter on a promising note with adjusted earnings and revenues surpassing the consensus mark. We are encouraged by the company’s solid international performance on strong growth in the emerging markets of China, South Korea and India. Also, a series of product launches along with major progress in precision medicine initiatives aided Thermo Fisher’s performance. Moreover, the Patheon buyout has substantially adding an impetus to the company’s value proposition for biopharma customers. Notably, it has already started to prove accretive to Thermo Fisher’s Laboratory Products and Services segment. The company has outperformed its industry in the past year. On the flip side, in the reported quarter, Thermo Fisher’s business segments were impacted by unfavorable business mix. Also, competitive headwinds and rising operating costs continue to pose a threat.”

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Several other research analysts also recently commented on TMO. Leerink Swann reissued an “outperform” rating and issued a $239.00 price objective (up from $200.00) on shares of Thermo Fisher Scientific in a research note on Thursday, February 1st. They noted that the move was a valuation call. Barclays increased their price objective on Thermo Fisher Scientific from $225.00 to $245.00 and gave the company an “overweight” rating in a research note on Thursday, February 1st. Morgan Stanley increased their price objective on Thermo Fisher Scientific from $223.00 to $227.00 and gave the company an “overweight” rating in a research note on Thursday, February 1st. Bank of America increased their price objective on Thermo Fisher Scientific from $235.00 to $250.00 and gave the company a “buy” rating in a research note on Thursday, February 1st. Finally, ValuEngine raised Thermo Fisher Scientific from a “hold” rating to a “buy” rating in a research note on Friday, February 2nd. Two equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. Thermo Fisher Scientific has a consensus rating of “Buy” and an average target price of $222.50.

NYSE TMO traded up $2.70 during mid-day trading on Wednesday, hitting $211.78. The stock had a trading volume of 46,461 shares, compared to its average volume of 1,479,899. Thermo Fisher Scientific has a twelve month low of $209.10 and a twelve month high of $211.31. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.95 and a current ratio of 1.36. The company has a market cap of $87.47 billion, a P/E ratio of 22.32, a P/E/G ratio of 1.60 and a beta of 1.14.

Thermo Fisher Scientific (NYSE:TMO) last posted its quarterly earnings data on Wednesday, April 25th. The medical research company reported $2.50 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.42 by $0.08. Thermo Fisher Scientific had a return on equity of 16.09% and a net margin of 10.24%. The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.62 billion. During the same period in the prior year, the company earned $2.08 EPS. The firm’s revenue was up 22.8% compared to the same quarter last year. sell-side analysts predict that Thermo Fisher Scientific will post 10.9 EPS for the current fiscal year.

In other news, CFO Stephen Williamson sold 2,500 shares of the stock in a transaction on Monday, March 5th. The stock was sold at an average price of $204.60, for a total transaction of $511,500.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director William G. Parrett sold 1,000 shares of the stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $209.80, for a total value of $209,800.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 44,500 shares of company stock valued at $9,339,130. 0.49% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Icon Wealth Partners LLC purchased a new position in shares of Thermo Fisher Scientific during the 4th quarter worth $105,000. Keeler Thomas Management LLC purchased a new position in shares of Thermo Fisher Scientific during the 4th quarter worth $106,000. Virtue Capital Management LLC purchased a new position in shares of Thermo Fisher Scientific during the 4th quarter worth $127,000. Johnson Financial Group Inc. grew its holdings in shares of Thermo Fisher Scientific by 2,608.7% during the 1st quarter. Johnson Financial Group Inc. now owns 623 shares of the medical research company’s stock worth $129,000 after purchasing an additional 600 shares during the period. Finally, Premia Global Advisors LLC purchased a new position in shares of Thermo Fisher Scientific during the 4th quarter worth $131,000. Institutional investors and hedge funds own 86.52% of the company’s stock.

Thermo Fisher Scientific Company Profile

Thermo Fisher Scientific Inc provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics under the Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services brands worldwide.

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