Thermo Fisher Positioned As Biopharma's Partner Of Choice

Could Thermo Fisher Scientific Inc. (NYSE:TMO) be the unsung hero of the biopharma sector's future? While its stock performance has recently lagged, analysts are betting on a major turnaround driven by strategic acquisitions and robust growth potential. William Blair initiated coverage on Tuesday on Thermo Fisher Scientific, citing a strong balance sheet and impressive M&A track record.

Analyst Matt Larew notes that Thermo Fisher has outperformed the S&P 500 over the past decade, delivering a 290% return since 2015, compared to the index's 213%.

However, shares have lagged in recent years, falling 27% since the end of 2021 while the S&P gained more than 30%.

This pullback is in line with peers, as life science tools companies and pharma services firms are down 45% and 17% on average, respectively, over the same period.

Since 2017, Thermo has made significant acquisitions and organic investments to bolster its biopharma services offerings, accounting for over 60% of laboratory products and biopharma services revenue and roughly one-third of total company sales.

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