Thermo Fisher Scientific: Recovery In Sight, Attractively Valued

ABI Invest
153 Followers

Summary

  • Thermo Fisher has good growth prospects ahead.
  • Core pharma, biotech, and bioproduction businesses are driving growth, with US manufacturing investments and the Solventum acquisition strengthening future prospects.
  • Margins remain under near-term pressure from tariffs and strategic investments, but productivity gains and pricing actions provide a cushion and set up for future expansion.
  • The stock is trading below its historical levels and is set for a re-rating as growth accelerates.

Analog temperature meter at an industrial facility

Использую только собственные снимки, сделанные на фотоаппараты разных производителей/iStock via Getty Images

Investment Thesis

Thermo Fisher (NYSE:TMO) (NEOE:TMO:CA) has solid growth potential. We’re starting to see signs of recovery in core bioproduction and pharma services, and newer products

This article was written by

153 Followers
I have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managing my own money and my purpose here is to share my views and benefit from the insights of the Seeking Alpha user community. Feel free to provide your feedback on my thesis in the comment section and I would love to have a discussion even if you have a variant view. My strategy is medium-term investing in ideas where there is a catalyst to unlock value and drive upside or short selling in case there is a downside catalyst. I also like to invest in growth stories available at a reasonable price. In terms of sector preferences, I am a generalist. However, I had spent most of my professional career analyzing industrial, consumer, and technology sectors. So, this is where I usually have higher conviction while investing.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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