Billionaire Steven Cohen’s Top 11 Dividend Stock Picks

7. Thermo Fisher Scientific Inc. (NYSE:TMO)

Point72 Asset Management’s Stake Value: $173,776,008

Dividend Yield as of June 26: 0.37%

On June 26, Bernstein resumed coverage of Thermo Fisher Scientific Inc. (NYSE:TMO) with a Market Perform rating. It also set a $520 price target after the analyst returned from maternity leave. In a research note, the firm said “Many things” are going right for the life science tools and diagnostics sector. New drug approvals, clinical trial starts, and funding have all improved over the past 12 months compared to the previous year. Bernstein expects that stronger funding will begin translating into higher customer spending. It also believes re-shoring efforts will support additional investment, while AI-driven demand for semiconductor-related tools continues to grow.

Earlier, on June 11, Piper Sandler initiated coverage of TMO with a Neutral rating and a $510 price target. The firm launched coverage of the life science tools sector with a “feet in the shallow end of the pool” approach. Piper said it only recommends buying Twist Bioscience because of its growing exposure to next-generation drug discovery and development. The firm noted that headwinds from biotech and academic spending, as well as exposure to China, are likely to improve in the near term. Even so, the analyst said Piper wants to see the next major growth drivers emerge before recommending more stocks in the sector. The firm added that investors “can buy multi-year growth compounding stocks early, middle, and late into their growth cycles but would simply prefer to wait out a couple quarters for the sector to perform like it did pre-COVID.”

Thermo Fisher Scientific Inc. (NYSE:TMO) focuses on advancing life sciences research, solving complex analytical challenges, improving laboratory productivity, and supporting patient health through diagnostics and the development and manufacturing of life-changing therapies.