Thermo Fisher downgraded to Equal Weight on valuation at Barclays

Barclays downgraded Thermo Fisher to Equal Weight from Overweight with a price target of $555, up from $475. The analyst downgraded the U.S. life science tools and diagnostics industry to Neutral from Positive on valuation along with two stocks, Danaher (DHR) and Thermo Fisher Scientific (TMO). Given recent run in shares, stocks trade at or above historical premiums to the market, leaving little room for more multiple expansion, the analyst tells investors in a research note. The firm struggles to see significant earnings upside to current estimates due to macro uncertainty across the end markets. Investors already pulling forward 2025 numbers to justify valuations, “which sets the space up for downside if recoveries take longer than expected,” contends Barclays