IQV - Thermo Fisher downgraded to underweight on valuation at Wells Fargo

Wells Fargo has downgraded life sciences company Thermo Fisher Scientific (NYSE:TMO) to underweight and lowered the price target from $605 to $525, citing an expensive valuation and "material headwinds for the stock ahead". Thermo Fisher (TMO) is trading -4.37% currently and -16.77% YTD. Analyst Timothy Daley sees the stock is trading well above its historical relative premium to peers with consensus estimates far above forecasts. Shares are set to face "a pending double-hit from numbers and valuation tightening simultaneously." "Despite being a well-diversified company in quality end markets with a top tier management team, we see the pros well outweighed by the cons. [...] Notably we believe the current sources of near-term upside, including vertical CRO integration [...] and high growth acquisitions [...] will be tough sells in a more critical investment landscape." Daley suggested that bioprocess headwinds over the next year from inventory de-stocking, return of discounting, and faster/steeper than expected rollover in

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Thermo Fisher downgraded to underweight on valuation at Wells Fargo