Thermo Fisher Scientific (TMO) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Thermo Fisher Scientific (NYSE:TMO) from a buy rating to a hold rating in a report released on Wednesday.

According to Zacks, “Thermo Fisher ended the third quarter on a promising note with both earnings and revenues surpassing the consensus mark. The company saw strength in all end markets categorized by customer type or geography. It particularly registered solid international performance with strong growth in Asia-Pacific including China. Also, a series of product launches with progress in precision medicine initiatives aided its performance. The company’s recently-closed acquisition of Advanced Bioprocessing business from BD should add complementary cell culture products to Thermo Fisher’s bioproduction offerings. Also, the company’s initiative to buy Gatan to boost electron microscopy suite buoys optimism. On the flip side, Thermo Fisher’s business segments are getting impacted by unfavorable business mix. Also, competitive headwinds and escalating costs pose a threat. Thermo Fisher outperformed its industry in the past three months.”

Several other research firms have also commented on TMO. Barclays raised their target price on Thermo Fisher Scientific from $250.00 to $275.00 and gave the stock an overweight rating in a report on Monday, September 24th. Goldman Sachs Group lowered Thermo Fisher Scientific from a buy rating to a neutral rating in a report on Monday, September 17th. Morgan Stanley raised their target price on Thermo Fisher Scientific from $242.00 to $254.00 and gave the stock an overweight rating in a report on Wednesday, October 10th. Citigroup raised their target price on Thermo Fisher Scientific from $260.00 to $280.00 and gave the stock a buy rating in a report on Wednesday, October 10th. Finally, UBS Group assumed coverage on Thermo Fisher Scientific in a report on Tuesday, October 9th. They set a buy rating and a $295.00 target price on the stock. Three analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. Thermo Fisher Scientific presently has an average rating of Buy and a consensus target price of $263.55.

Thermo Fisher Scientific stock opened at $235.01 on Wednesday. Thermo Fisher Scientific has a one year low of $181.51 and a one year high of $249.95. The stock has a market capitalization of $93.81 billion, a price-to-earnings ratio of 24.76, a price-to-earnings-growth ratio of 1.69 and a beta of 1.08. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.84 and a quick ratio of 1.27.

Thermo Fisher Scientific (NYSE:TMO) last posted its earnings results on Wednesday, October 24th. The medical research company reported $2.62 EPS for the quarter, topping the consensus estimate of $2.55 by $0.07. The firm had revenue of $5.92 billion for the quarter, compared to analyst estimates of $5.70 billion. Thermo Fisher Scientific had a return on equity of 16.49% and a net margin of 10.75%. Thermo Fisher Scientific’s revenue for the quarter was up 15.7% compared to the same quarter last year. During the same period last year, the company earned $2.31 earnings per share. As a group, equities analysts predict that Thermo Fisher Scientific will post 11.04 earnings per share for the current year.

Thermo Fisher Scientific announced that its Board of Directors has approved a stock repurchase plan on Friday, September 7th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the medical research company to repurchase up to 2.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 15th. Shareholders of record on Monday, December 17th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 0.29%. The ex-dividend date of this dividend is Friday, December 14th. Thermo Fisher Scientific’s payout ratio is currently 7.17%.

In other Thermo Fisher Scientific news, CEO Marc N. Casper sold 125,520 shares of the firm’s stock in a transaction that occurred on Monday, October 1st. The stock was sold at an average price of $247.50, for a total value of $31,066,200.00. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Tyler Jacks sold 4,772 shares of the firm’s stock in a transaction that occurred on Monday, November 19th. The shares were sold at an average price of $239.75, for a total value of $1,144,087.00. The disclosure for this sale can be found here. 0.49% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of TMO. Capital International Investors acquired a new stake in Thermo Fisher Scientific in the third quarter valued at approximately $868,413,000. Capital World Investors grew its holdings in Thermo Fisher Scientific by 19.2% in the third quarter. Capital World Investors now owns 15,412,242 shares of the medical research company’s stock valued at $3,761,820,000 after purchasing an additional 2,482,783 shares during the period. FMR LLC grew its holdings in Thermo Fisher Scientific by 18.5% in the third quarter. FMR LLC now owns 6,499,139 shares of the medical research company’s stock valued at $1,586,310,000 after purchasing an additional 1,016,082 shares during the period. AQR Capital Management LLC grew its holdings in Thermo Fisher Scientific by 71.4% in the third quarter. AQR Capital Management LLC now owns 1,499,423 shares of the medical research company’s stock valued at $365,979,000 after purchasing an additional 624,602 shares during the period. Finally, Cantillon Capital Management LLC acquired a new stake in Thermo Fisher Scientific in the third quarter valued at approximately $130,790,000. 85.47% of the stock is currently owned by institutional investors.

Thermo Fisher Scientific Company Profile

Thermo Fisher Scientific Inc provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics under the Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services brands worldwide.

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