In a report released yesterday, Michael Ryskin from Bank of America Securities reiterated a Buy rating on Thermo Fisher (TMO – Research Report), with a price target of $680.00.
Michael Ryskin has given his Buy rating due to a combination of factors surrounding Thermo Fisher’s strategic acquisition of Solventum’s Purification & Filtration business. This acquisition, valued at approximately $4.1 billion, is expected to enhance Thermo Fisher’s capabilities in the biologics sector by integrating Solventum’s advanced purification and filtration technologies into its Life Sciences Solutions segment.
Despite an initial dilution to earnings per share in the first year, the deal is projected to become accretive over time, with significant revenue and cost synergies anticipated. By the fifth year, Thermo Fisher expects to achieve $125 million in adjusted operating income from these synergies. The acquisition is seen as a well-aligned strategic move that offers Thermo Fisher a solid opportunity for incremental growth, leveraging its expertise to improve margins and operational efficiency in a business that was previously underperforming under Solventum.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $655.00 price target.