Thermo Fisher Scientific (TMO): Assessing Valuation After FDA Wins Expand Cancer and Diagnostic Offerings

Thermo Fisher Scientific (TMO) stock is catching attention after securing two major U.S. regulatory milestones. The FDA granted approval for its Ion Torrent Oncomine Dx Target Test, a companion diagnostic supporting Bayer’s new HER2-targeted lung cancer therapy, and also cleared its EXENT System to help diagnose multiple myeloma.

See our latest analysis for Thermo Fisher Scientific.

Big regulatory wins like the Oncomine Dx Target Test approval have clearly helped build momentum for Thermo Fisher’s stock. The company has posted a 20.3% share price return over the past 90 days and a 14.7% total shareholder return for the year. Recent launches in diagnostics and biotech support have sparked fresh interest from investors who are considering both growth potential and Thermo Fisher’s ability to expand its reach in crucial healthcare markets.

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With Thermo Fisher shares already rebounding sharply, the key question for investors is whether there is still untapped value here or if the market has already fully priced in all of this future growth potential.

Most Popular Narrative: 4.3% Undervalued

Compared to Thermo Fisher's last close price of $587.48, the most popular narrative places fair value at $613.58. This signals notable upside potential, if the assumptions behind this forecast are realized.

The company's positioning as a trusted, end-to-end partner for pharma and biotech enables greater customer stickiness and deeper integration into high-growth markets like clinical research, outsourcing (CDMO), and lab services. This enhances recurring revenue streams and supports high single-digit earnings growth over time.

Read the complete narrative.

Curious what powers this bullish view? The storyline features bold earnings and margin expectations and assumes the company achieves market-defining operational efficiencies. Want to uncover the projections behind this valuation? Dive in to reveal the strategic moves and financial leaps analysts are betting on.

Result: Fair Value of $613.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing funding uncertainty and margin pressures in critical segments could limit Thermo Fisher's ability to deliver the projected earnings momentum.

Find out about the key risks to this Thermo Fisher Scientific narrative.

Build Your Own Thermo Fisher Scientific Narrative

If you have your own take on Thermo Fisher Scientific or prefer to draw your own conclusions, it’s easy and quick to build your perspective: Do it your way

A great starting point for your Thermo Fisher Scientific research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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