Analyst Ratings January 30, 2026

Stifel Sticks With Buy on Thermo Fisher After Strong 2025 Finish; $700 Target Intact

Analysts cite solid fourth-quarter results and biopharma exposure as drivers of mid-single-digit growth expectations for 2026

By Derek Hwang TMO
Stifel Sticks With Buy on Thermo Fisher After Strong 2025 Finish; $700 Target Intact
TMO

Stifel reaffirmed its Buy rating on Thermo Fisher Scientific (TMO) and raised its price target to $700.00 after the company delivered better-than-expected results to close 2025. The firm points to Thermo Fisher’s sizable biopharma exposure and recent operating momentum as the rationale for anticipating mid-single-digit organic growth in 2026, while other research houses have adjusted or initiated coverage with similar positive stances.

Key Points

  • Stifel reiterated a Buy rating for Thermo Fisher and set a $700.00 price target, implying about 21% upside from the cited share price.
  • Management guided to 3-6% organic growth for 2026, with biopharma exposure (approximately 60% of revenues) a primary factor in expectations for mid-single-digit expansion.
  • Other firms adjusted or initiated coverage after Q4 results: TD Cowen raised its target to $683 and Goldman Sachs started coverage with a $685 target, while the stock has returned 24.27% over six months.

Stifel has reaffirmed a Buy recommendation on Thermo Fisher Scientific (TMO) and set a price target of $700.00, signaling roughly 21% potential upside from the referenced share price of $579.96. The analyst price target sits within a broader range of street targets between $590 and $750.

The firm noted Thermo Fisher’s performance at the end of 2025 as a key factor underpinning its stance. Unlike several peers that pre-announced results, the company reported a fourth-quarter result that Stifel characterized as a "solid beat." On a trailing-twelve-month basis, Thermo Fisher recorded revenue growth of 3.91%, with total revenue reported at $44.56 billion.

Management provided guidance for organic growth in 2026 of 3-6%, with an emphasis on the lower end of that range as the baseline scenario. Stifel and other analysts see the company’s heavy exposure to biopharma - which accounts for approximately 60% of revenues - as a principal lever that could lift organic expansion into the mid-single-digit area of growth.

Street projections included in coverage note an expected 5% revenue increase for fiscal 2026 and forecast earnings per share of $24.36. Stifel also flagged the possibility of additional earnings upside tied to the closing of the Clario acquisition, while describing the shares as reasonably valued at current levels.

At the same time, market metrics cited in research show TMO trading at a price-to-earnings ratio of 32.55 and a PEG ratio of 4.53, figures that indicate valuation is elevated relative to the company’s growth profile. Despite that, the stock has shown strong recent momentum, posting a price return of 24.27% over the past six months.

Other analyst moves followed the company’s fourth-quarter release. TD Cowen updated its model after results that included roughly 1.3% organic growth for the quarter and moved its price target to $683 while retaining a Buy rating. Stifel’s revised $700 target was explicitly linked to expectations for mid-single-digit organic growth driven by the biopharma business. Separately, Goldman Sachs initiated coverage with a Buy and set a $685 target, a level that similarly implies about 21% upside from the price cited.

Beyond financials and analyst commentary, Thermo Fisher disclosed a strategic partnership with NVIDIA to develop AI-enabled laboratory automation solutions. The stated aim of the collaboration is to integrate Thermo Fisher’s instrument platforms with NVIDIA’s AI infrastructure to improve automation, accuracy, and speed in scientific laboratories.

The company also announced executive changes, with Executive Vice President and Chief Operating Officer Michel Lagarde and Executive Vice President Frederick M. Lowery scheduled to depart by 2026. These leadership transitions were presented as part of Thermo Fisher’s efforts to adapt and continue growth amid evolving market conditions.

Overall, the combination of a strong finish to 2025, guidance that targets modest organic growth for 2026, and favorable analyst sentiment underpins the current positive view among several research firms. At the same time, valuation measures and the company’s reliance on biopharma revenues are highlighted as considerations for investors weighing upside against risk.


Key financial and market data cited:

  • Stifel price target: $700.00
  • Reference share price used in coverage: $579.96
  • Street price target range: $590 to $750
  • Trailing-twelve-month revenue growth: 3.91%
  • Total revenue: $44.56 billion
  • Management 2026 organic growth guidance: 3-6%
  • Analysts' revenue growth forecast for fiscal 2026: 5%
  • Analysts' EPS projection for fiscal 2026: $24.36
  • Biopharma share of revenues: ~60%
  • Six-month price return: 24.27%
  • P/E ratio: 32.55; PEG ratio: 4.53
  • Q4 organic growth: ~1.3%
  • Other analyst targets: TD Cowen $683; Goldman Sachs $685

Risks

  • Elevated valuation metrics - the company is trading at a P/E of 32.55 and a PEG of 4.53, which may constrain upside relative to growth expectations; this impacts equity investors in the healthcare and life sciences tools sectors.
  • Concentration of revenue in biopharma - with around 60% of sales tied to that segment, slower end-market demand could weigh on Thermo Fisher’s organic growth and broader life sciences sector performance.
  • Executive departures - the announced exits of two senior executives by 2026 introduce leadership uncertainty that could affect operations and strategic execution across the company’s laboratory and services businesses.

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