Thermo Fisher seen as beneficiary of equipment demand in IPO market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2022
0mins
Should l Buy TMO?
Source: SeekingAlpha
Thermo Fisher Scientific Inc's stock has hit a 20-day low, reflecting a challenging trading environment.
Analysts at Goldman Sachs have identified Thermo Fisher as a key beneficiary of growing equipment demand in the IPO market, recommending buying at current price levels. This positive outlook comes amid a surge in semiconductor demand and strong confidence in market activity, which could enhance Thermo Fisher's position in future market dynamics.
The implications of this analysis suggest that despite the current price decline, there is potential for recovery as demand for equipment increases, positioning Thermo Fisher favorably in the evolving market landscape.
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Analyst Views on TMO
Wall Street analysts forecast TMO stock price to rise
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 448.210
Low
580.00
Averages
658.89
High
750.00
Current: 448.210
Low
580.00
Averages
658.89
High
750.00
About TMO
Thermo Fisher Scientific Inc. is engaged in accelerating life sciences research, solving complex analytical challenges, increasing laboratory productivity, and improving patient health through diagnostics and the development and manufacture of life-changing therapies. Through its Life Sciences Solutions segment, it provides a portfolio of reagents, instruments and consumables used in biological and medical research, the discovery and production of new drugs and vaccines as well as diagnosis of infection and disease. Through its Analytical Instruments segment, it provides instruments and the supporting consumables, software and services that are used for a range of applications. Its Specialty Diagnostics segment offers a range of diagnostic test kits, reagents, culture media, instruments and associated products. Its Laboratory Products and Biopharma Services segment offer virtually everything needed for the laboratory. It also provides purification and filtration technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Thermo Fisher Launches Bioprocess Design Center
- Center Opening: Thermo Fisher has opened a new Bioprocess Design Center in Plainville, Massachusetts, covering 4,000 square feet, aimed at providing comprehensive bio-production solutions to facilitate the development of life-changing therapies.
- Customer Collaboration: The new center enables customers to partner with the company's experts to tackle complex bioprocessing challenges, thereby enhancing productivity, reducing risks, and shortening development timelines, which significantly boosts drug development efficiency.
- Innovation Sharing Platform: The establishment of this center marks a significant milestone for Thermo Fisher, as it strengthens connections and collaborations nationwide, creating more opportunities for sharing innovations and advancing the industry.
- Industry Leadership: As a global leader in serving science, Thermo Fisher provides high-end analytical instruments and laboratory equipment to pharmaceutical, biotech, healthcare, academia, and government sectors, facilitating accelerated life sciences research and improved patient diagnostics.
See More
Goldman Sachs Bullish on IPOs and M&A Opportunities
- IPO Market Outlook: Goldman Sachs analysts predict they will be major winners in the IPO and M&A markets, indicating significant investment decisions in their charitable trust, reflecting strong confidence in market activity.
- Surge in Semiconductor Demand: Taiwan Semiconductor Manufacturing faces overwhelming business demand, with ARM Holdings also indicating a need for more chips, highlighting a tight supply-demand situation in the global semiconductor market that could lead to price increases and market share redistribution.
- Quantum Computing Leader: D-Wave is identified as the best option in the quantum computing space, indicating its leading position in emerging technologies, which may attract more investor attention to its future growth potential.
- Growing Equipment Demand: Thermo Fisher is viewed as a beneficiary of equipment demand in the IPO market, with analysts recommending buying at current price levels, signaling the company's crucial role in future market dynamics.
See More
Apple, Amazon, and TSMC Deliver Earnings Triple Plays
- Earnings Highlights: Apple, Amazon, and TSMC have all achieved a 'triple play' this quarter, delivering growth in earnings, revenue, and guidance, which underscores strong market demand and business resilience, further solidifying their leadership positions in their respective industries.
- Market Reaction: Investors reacted positively to the earnings reports from these three companies, driving stock prices higher, which reflects a renewed confidence in tech stocks and may attract more capital inflows into the technology sector.
- Industry Impact: The robust performance of these companies not only enhances their market valuations but may also lead to upward revisions in earnings expectations for other tech firms, creating a virtuous cycle that could further drive the recovery of the entire industry.
- Future Outlook: As the global economy gradually recovers, the success stories of Apple, Amazon, and TSMC may inspire other companies to adopt similar growth strategies, fostering innovation and investment that drive long-term growth.
See More
Thermo Fisher Sells Microbiology Business for $1.08 Billion
- Transaction Value: Thermo Fisher Scientific has agreed to sell its microbiology business to pan-European private equity firm Astorg for approximately $1.08 billion, which includes cash and a $50 million seller note, providing the company with liquidity to support other strategic investments.
- Business Restructuring: This sale represents a strategic move by Thermo Fisher to optimize its business portfolio, aiming to concentrate resources on areas with higher growth potential, thereby enhancing overall operational efficiency and market competitiveness.
- Market Reaction: The market has reacted positively to this transaction, with analysts believing that this move will help Thermo Fisher achieve better growth in future financial performance, particularly in investments within the biotechnology and life sciences sectors.
- Private Equity Involvement: Astorg's participation as the buyer indicates ongoing interest from private equity firms in the microbiology sector, with expectations that they will leverage their expertise to drive further development and expansion of the business.
See More
Thermo Fisher Sells Microbiology Business for $1.075 Billion
- Transaction Value: Thermo Fisher has agreed to sell its microbiology business for approximately $1.075 billion in cash and a $50 million seller note, which will provide significant cash inflow but also means losing a business that generated $645 million in revenue.
- Business Impact: The microbiology unit focuses on antimicrobial susceptibility testing and culture media solutions, and while the deal is expected to close in the second half of 2026, it will dilute Thermo Fisher's adjusted earnings per share by $0.15, indicating a short-term decline in profitability.
- Market Reaction: Following the announcement, Thermo Fisher's premarket stock price dipped 0.12% to $469.12, yet the market remains optimistic about its future revenue outlook, projecting adjusted EPS between $24.64 and $25.12 for 2026.
- Strategic Shift: This transaction signifies Thermo Fisher's strategic shift towards focusing on its core business and optimizing its asset portfolio, which is expected to provide greater flexibility for future growth opportunities and competitive positioning in the market.
See More
Market Capital Flow Issues Impact Healthcare Stocks
- Healthcare Stocks Hit Hard: Despite strong quarterly results from companies like Thermo Fisher and Danaher, the lack of investor confidence in the healthcare sector has led to significant stock declines, indicating a panic among investors regarding healthcare equities.
- Capital Flow Concentration: Market funds are primarily directed towards stocks tied to data center construction, resulting in persistent selling pressure on healthcare stocks such as Abbott Labs and Cardinal Health, reflecting a risk-averse sentiment among investors towards the healthcare industry.
- IPO Market Impact: Upcoming IPOs like SpaceX are likely to attract substantial capital, further weakening healthcare stock performance, reminiscent of the capital concentration seen during the internet bubble in 1999, which could lead to further declines in healthcare stock P/E ratios.
- Key Earnings Reports from Tech Giants: The upcoming earnings reports from Alphabet, Amazon, Meta, and Microsoft will be crucial; if two of these companies perform well, it may boost market sentiment, whereas poor results could exacerbate downward pressure on healthcare stocks.
See More
Thermo Fisher Launches Bioprocess Design Center
- Center Opening: Thermo Fisher has opened a new Bioprocess Design Center in Plainville, Massachusetts, covering 4,000 square feet, aimed at providing comprehensive bio-production solutions to facilitate the development of life-changing therapies.
- Customer Collaboration: The new center enables customers to partner with the company's experts to tackle complex bioprocessing challenges, thereby enhancing productivity, reducing risks, and shortening development timelines, which significantly boosts drug development efficiency.
- Innovation Sharing Platform: The establishment of this center marks a significant milestone for Thermo Fisher, as it strengthens connections and collaborations nationwide, creating more opportunities for sharing innovations and advancing the industry.
- Industry Leadership: As a global leader in serving science, Thermo Fisher provides high-end analytical instruments and laboratory equipment to pharmaceutical, biotech, healthcare, academia, and government sectors, facilitating accelerated life sciences research and improved patient diagnostics.
See More
Goldman Sachs Bullish on IPOs and M&A Opportunities
- IPO Market Outlook: Goldman Sachs analysts predict they will be major winners in the IPO and M&A markets, indicating significant investment decisions in their charitable trust, reflecting strong confidence in market activity.
- Surge in Semiconductor Demand: Taiwan Semiconductor Manufacturing faces overwhelming business demand, with ARM Holdings also indicating a need for more chips, highlighting a tight supply-demand situation in the global semiconductor market that could lead to price increases and market share redistribution.
- Quantum Computing Leader: D-Wave is identified as the best option in the quantum computing space, indicating its leading position in emerging technologies, which may attract more investor attention to its future growth potential.
- Growing Equipment Demand: Thermo Fisher is viewed as a beneficiary of equipment demand in the IPO market, with analysts recommending buying at current price levels, signaling the company's crucial role in future market dynamics.
See More
Apple, Amazon, and TSMC Deliver Earnings Triple Plays
- Earnings Highlights: Apple, Amazon, and TSMC have all achieved a 'triple play' this quarter, delivering growth in earnings, revenue, and guidance, which underscores strong market demand and business resilience, further solidifying their leadership positions in their respective industries.
- Market Reaction: Investors reacted positively to the earnings reports from these three companies, driving stock prices higher, which reflects a renewed confidence in tech stocks and may attract more capital inflows into the technology sector.
- Industry Impact: The robust performance of these companies not only enhances their market valuations but may also lead to upward revisions in earnings expectations for other tech firms, creating a virtuous cycle that could further drive the recovery of the entire industry.
- Future Outlook: As the global economy gradually recovers, the success stories of Apple, Amazon, and TSMC may inspire other companies to adopt similar growth strategies, fostering innovation and investment that drive long-term growth.
See More
Thermo Fisher Sells Microbiology Business for $1.08 Billion
- Transaction Value: Thermo Fisher Scientific has agreed to sell its microbiology business to pan-European private equity firm Astorg for approximately $1.08 billion, which includes cash and a $50 million seller note, providing the company with liquidity to support other strategic investments.
- Business Restructuring: This sale represents a strategic move by Thermo Fisher to optimize its business portfolio, aiming to concentrate resources on areas with higher growth potential, thereby enhancing overall operational efficiency and market competitiveness.
- Market Reaction: The market has reacted positively to this transaction, with analysts believing that this move will help Thermo Fisher achieve better growth in future financial performance, particularly in investments within the biotechnology and life sciences sectors.
- Private Equity Involvement: Astorg's participation as the buyer indicates ongoing interest from private equity firms in the microbiology sector, with expectations that they will leverage their expertise to drive further development and expansion of the business.
See More
Thermo Fisher Sells Microbiology Business for $1.075 Billion
- Transaction Value: Thermo Fisher has agreed to sell its microbiology business for approximately $1.075 billion in cash and a $50 million seller note, which will provide significant cash inflow but also means losing a business that generated $645 million in revenue.
- Business Impact: The microbiology unit focuses on antimicrobial susceptibility testing and culture media solutions, and while the deal is expected to close in the second half of 2026, it will dilute Thermo Fisher's adjusted earnings per share by $0.15, indicating a short-term decline in profitability.
- Market Reaction: Following the announcement, Thermo Fisher's premarket stock price dipped 0.12% to $469.12, yet the market remains optimistic about its future revenue outlook, projecting adjusted EPS between $24.64 and $25.12 for 2026.
- Strategic Shift: This transaction signifies Thermo Fisher's strategic shift towards focusing on its core business and optimizing its asset portfolio, which is expected to provide greater flexibility for future growth opportunities and competitive positioning in the market.
See More
Market Capital Flow Issues Impact Healthcare Stocks
- Healthcare Stocks Hit Hard: Despite strong quarterly results from companies like Thermo Fisher and Danaher, the lack of investor confidence in the healthcare sector has led to significant stock declines, indicating a panic among investors regarding healthcare equities.
- Capital Flow Concentration: Market funds are primarily directed towards stocks tied to data center construction, resulting in persistent selling pressure on healthcare stocks such as Abbott Labs and Cardinal Health, reflecting a risk-averse sentiment among investors towards the healthcare industry.
- IPO Market Impact: Upcoming IPOs like SpaceX are likely to attract substantial capital, further weakening healthcare stock performance, reminiscent of the capital concentration seen during the internet bubble in 1999, which could lead to further declines in healthcare stock P/E ratios.
- Key Earnings Reports from Tech Giants: The upcoming earnings reports from Alphabet, Amazon, Meta, and Microsoft will be crucial; if two of these companies perform well, it may boost market sentiment, whereas poor results could exacerbate downward pressure on healthcare stocks.
See More
