Stifel Adjusts Price Target#
Stifel has lowered its price target for Thermo Fisher Scientific shares (NYSE:TMO) from $700 to $600, while still maintaining a Buy rating. The firm expressed concerns about the company's recent performance, indicating that the latest quarterly results and conference call did not provide enough positive signals for investors.
Stock Performance and Market Reaction#
Following this news, Thermo Fisher's stock has seen a significant decline, dropping 11% over the past week and 19% year-to-date. Stifel highlighted doubts regarding the company's growth acceleration and raised questions about the future of its Tools business as key factors contributing to the stock's downturn.
Demand Outlook and Growth Expectations#
Despite these concerns, Stifel's research suggests that the demand outlook for biopharma, which accounts for 60% of Thermo Fisher's revenue, is improving for 2026. The company has expressed confidence in achieving mid-single-digit organic growth by the end of the year, supported by positive order trends. Stifel believes the current stock price of $467 does not accurately reflect this improving demand or the company's growth expectations.
Mixed Market Reactions#
In addition to Stifel's adjustments, Thermo Fisher recently reported first-quarter 2026 earnings that exceeded analyst expectations, with an adjusted earnings per share of $5.44 compared to the forecasted $5.25. Revenue also surpassed projections, reaching $11.01 billion against an expected $10.87 billion. However, despite these strong results, the stock still faced a decline. BofA Securities also lowered its price target for Thermo Fisher from $700 to $630, while maintaining a Buy rating, reflecting the mixed reactions from both the market and analysts regarding the company's recent performance.