Thermo Fisher Scientific is poised for growth in 2025, driven by aging demographics, higher healthcare spending, and demand for innovative biological medicines. TMO's diverse revenue streams, including life sciences, analytical instruments, specialty diagnostics, and biopharma services, ensure stability and resilience against market cycles. Thermo Fisher is a good bet for a well diversified portfolio.
Thermo Fisher (TMO) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Thermo Fisher Scientific Inc. (NYSE:TMO ) 43rd Annual J.P. Morgan Healthcare Conference Call January 14, 2025 11:15 AM ET Company Participants Marc Casper - Chief Executive Officer Conference Call Participants Rachel Vatnsdal - JPMorgan Rachel Vatnsdal Perfect.
The industry-wide trend of difficult macroeconomic conditions is creating a challenging business environment for Thermo Fisher.
TMO's recent strategic acquisitions, including the $3.1-billion acquisition of Olink Holdings, are likely to drive future growth.
Thermo Fisher's stock is now a "buy" due to signs of recovery, including positive sales growth and stabilized margins, despite recent bearish trends. The company's post-pandemic challenges are easing, with optimistic executive comments and improved guidance for 2024, indicating a potential return to organic growth. Potential deregulation under Trump's administration could benefit Thermo Fisher by increasing demand for its equipment and consumables in a more competitive pharmaceutical market.
Investors are also concerned about Thermo Fisher's continuous decline in testing revenues due to the decline in COVID testing-related demand.
Investors continue to be optimistic about Thermo Fisher due to its strategic acquisitions and string of product launches.
Thermo Fisher Scientific is well-positioned for growth due to its consistent revenue streams, strong M&A track record and minimal macroeconomic dependence. Despite a COVID-related revenue surge and subsequent correction, the company's valuation multiples are now reasonable, offering potential for capital appreciation. 2025 growth drivers include improved biotech funding and China's government stimulus.
Thermo Fisher launches CTS Detachable Dynabeads CD4 and CTS Detachable Dynabeads CD8 to enhance cell therapy development and production.
The reduction in revenues due to the decline in COVID-19-related products and services is expected to diminish or disappear in 2025. Thermo Fisher has been growing by acquiring other companies. This strategy led to the company growing 174% between 2017 and 2024 Q3 TTM. The company is filling more patents. In the first 11 months of 2024, Thermo Fisher had 254 published patents; its maximum number in a year.
A few of its recent strategic acquisitions that are likely to drive future growth for TMO include the $3.1-billion acquisition of Olink Holdings.