BofA Raises Thermo Fisher (TMO) Target as Biopharma Recovery Comes Into View

Core Viewpoint - Thermo Fisher Scientific Inc. is positioned for growth with a focus on biopharma recovery and strategic acquisitions, enhancing its clinical trial research capabilities [2][3][4]. Group 1: Financial Outlook - Bank of America raised the price target for Thermo Fisher from $650 to $700, maintaining a Buy rating, anticipating a recovery in biopharma spending by 2026 [2]. - The firm expects current market headwinds to ease, leading to a return to normal conditions [2]. Group 2: Strategic Acquisitions - Thermo Fisher announced the acquisition of Clario for up to $9.4 billion, which includes an upfront payment of approximately $8.88 billion and potential earn-out payments based on Clario's performance [3]. - This acquisition is part of Thermo Fisher's strategy to strengthen its clinical trial research business amid increasing demand in the US [3][4]. - The deal marks Thermo Fisher's third major acquisition in the year, reflecting its commitment to capitalize on the expanding drug development and manufacturing activities in the pharmaceutical sector [3]. Group 3: Market Positioning - The acquisition of Clario positions Thermo Fisher deeper into clinical development, which is viewed as a more stable and attractive growth area compared to early-stage research [4]. - Thermo Fisher operates as a global supplier of analytical instruments, clinical development solutions, specialty diagnostics, and various services in the laboratory, pharmaceutical, and biotechnology sectors [4].