Wells Fargo Remains a Buy on Thermo Fisher (TMO) With a PT of $570

Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the 11 Best Strong Buy Stocks to Invest in Now. In a report released on June 26, Brandon Couillard from Wells Fargo maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) with a price target of $570.00. The analyst based the rating on the company’s financial prospects and strategic positioning, stating that its recent amendment to the agreement with SOLV is a positive move for the company.

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A workstation in a research lab stocked with laboratory products and services.

The amendment allows Thermo Fisher Scientific Inc. (NYSE:TMO) to exclude the lower-margin Drinking Water Filtration business from the acquisition. The analyst expects this change to potentially expedite the transaction’s completion, simplify it significantly, and also reduce the purchase price, factors that boost the deal’s financial attractiveness.

Couillard further expects the amended deal to be accretive to Thermo Fisher Scientific Inc.’s (NYSE:TMO) EPS, even after factoring in financing costs. The Drinking Water is non-core for the company, which is why the analyst considers its exclusion to be in line with Thermo Fisher Scientific Inc.’s (NYSE:TMO) focus on higher-margin and higher-growth opportunities.

Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.

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