赛默飞世尔科技：A promising year ahead

Investment Rating - The report maintains a "BUY" rating for Thermo Fisher, with a target price raised from US$670 to US$690, indicating an upside potential of 18.5% from the current price of US$582.38 [3][7]. Core Insights - Thermo Fisher delivered a strong performance in 4Q24, with revenue growth of 4.7% YoY and adjusted EPS growth of 7.6%, surpassing consensus estimates [1][7]. - The company anticipates revenue growth of 1.4-2.6% YoY and adjusted EPS growth of 5.7-7.5% YoY for 2025, reflecting a positive outlook [1][7]. - A robust demand outlook is expected to continue, driven by pharmaceutical innovation and a favorable biotech funding environment, with management projecting long-term industry growth of 4-6% and organic growth for Thermo Fisher of 7-9% [7][8]. - The company plans to invest US$1.4-1.7 billion in capital expenditures in 2025, marking an 11% YoY increase, the first such growth since 2021 [7]. Financial Summary - For FY24, Thermo Fisher reported revenue of US$42,879 million, with a slight YoY growth of 0.1%. The forecast for FY25 is US$44,129 million, representing a growth of 2.9% YoY [2][15]. - Adjusted net profit for FY24 was US$8,380 million, with an expected increase to US$8,852 million in FY25, reflecting a growth of 5.6% YoY [2][15]. - The adjusted EPS for FY24 was US$21.94, projected to rise to US$23.38 in FY25, indicating a growth of 6.6% [2][15]. Segment Performance - In 4Q24, all business segments showed sequential improvements, with Life Science growing by 5.5% YoY, Analytical Instruments by 7.3% YoY, and Laboratory Products and Biopharma Services by 3.8% YoY [7][8]. - The clinical CRO business experienced low single-digit growth in 2024, while the demand from China showed signs of recovery, with low single-digit growth in revenue [7][8]. Market Position - Thermo Fisher's market capitalization stands at approximately US$222.47 billion, with significant institutional ownership from Vanguard (8.6%) and BlackRock (7.6%) [3][4]. - The stock has shown a 1-month performance of 8.4% and a 3-month performance of 4.1%, indicating positive market sentiment [5][6].