Morgan Stanley has revised its price target for Thermo Fisher Scientific (TMO, Financial), lowering it from $678 to $550. Despite maintaining an Overweight rating on the stock, the firm acknowledges that ongoing tariffs between the U.S. and China are anticipated to impact both volume and costs for the company.
The analyst suggests that strategies to mitigate these challenges are expected to fully counteract the negative effects by 2026. Meanwhile, the changes in tariffs and policies could offer new opportunities for growth in the medium to long term, potentially acting as a positive influence despite the current obstacles.
Following Thermo Fisher's first-quarter results, Morgan Stanley has adjusted its 2025 revenue projection slightly downwards to $43.75 billion from the previous $43.78 billion. The firm's adjusted earnings per share (EPS) estimate for the same year has also been decreased marginally, moving from $23.33 to $23.31. Additionally, the company's valuation multiple has been reduced.
