An analyst launched coverage of Thermo Fisher Scientific (TMO 3.35%) after market close on Monday, and the stock was experiencing a little pop the following day as a result. On Tuesday, it closed more than 2% higher in price, contrasting well with the 0.6% slide of the benchmark S&P 500 (^GSPC 1.52%).
Buy, says a new bull
Happily for investors, that pundit is bullish on Thermo Fisher's future. William Blair analyst Matt Larew ranked the healthcare device and services company's stock as an outperform (buy, in other words); it was unclear as of this writing if he set a price target.
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According to reports, Larew believes Thermo Fisher has numerous competitive advantages, and is leveraging them well. He wrote in his inaugural analyst note that the company offers best-in-class services, and with its range of products and services can act as something of a one-stop shop for customers.
On a slightly negative note, Larew pointed out that the company's core biopharma client base is currently experiencing a degree of softness. However, he feels that with its extensive lineup of quality offerings, Thermo Fisher is well positioned to take advantage of that segment when it recovers.
Oversold and undervalued
Thermo Fisher's shares have been in something of a funk; in contrast to numerous other healthcare titles, they are down in price since the start of the year.
Its recent fundamentals have been better than expected -- second-quarter revenue rose by almost 3% (to almost $10.9 billion), and non-GAAP (generally accepted accounting principles) adjusted EPS was at $5.36. Although both figures beat the consensus analyst estimates, they weren't crushing beats, and that top-line growth wasn't remarkable enough to move the stock.
