UBS Upgrades Thermo Fisher Scientific (TMO) and Raises Price Target
On September 9, UBS upgraded its rating on Thermo Fisher Scientific from Neutral to Buy while raising the price target significantly—from $540 to $730. The move reflects a shift in sentiment toward life sciences tools companies like TMO, which have seen their stock prices lag despite continued revenue growth and margin expansion over recent years. The firm's upgrade is based on expectations for durable organic growth of 5%-6% or more by 2027, driven by better pharma funding, reshoring investment, AI-driven R&D efficiency gains, market share increases, and stabilization in China. UBS also anticipates operating margin expansion and double-digit earnings per share (EPS) growth. The upgrade is notable for its magnitude—moving two rating notches at once—and highlights a broader reevaluation of the sector after years of underperformance due to reduced biotech funding, frozen academic budgets, and declining Chinese demand.
Tickers: $TMO
Topics: Life Sciences Tools Market Stock Upgrades Thermo Fisher Scientific UBS