Leerink Partners analyst Puneet Souda has maintained their bullish stance on TMO stock, giving a Buy rating yesterday.
Puneet Souda has given his Buy rating due to a combination of factors surrounding Thermo Fisher’s strategic acquisition of SOLV’s Purification and Filtration business. The acquisition, valued at $4.1 billion, is anticipated to enhance Thermo Fisher’s position in the bioprocessing sector, particularly in filtration, an area where competitors like Danaher and Repligen are already strong.
Despite the initial dilutive impact on earnings per share, the deal is expected to become accretive over time, with significant cost synergies and a high return on invested capital projected by the fifth year. The acquisition aligns with Thermo Fisher’s long-term growth strategy in the Life Sciences Solutions segment, and the expected improvements in the PPI business are likely to offset any initial margin dilution.
Souda covers the Healthcare sector, focusing on stocks such as Natera, Hologic, and Illumina. According to TipRanks, Souda has an average return of -12.0% and a 30.91% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $665.00 price target.