TMO Stock Forecast & Price Target

Thermo Fisher Scientific is projected to experience continued revenue growth across its segments, with lab products and services (LPBS) anticipated to expand at a 5.4% compound annual growth rate (CAGR) over the next three years, reflecting a robust historical growth rate of 16.9% from 2019 to 2024. The company is expected to capture additional market share in the contract research organization (CRO) segment, driven by an increasing trend in biopharma clinical trial outsourcing, particularly in early and late-stage drug development. Furthermore, despite a slowdown in growth expectations for analytical instruments revenue at a projected 2.5% CAGR, the solid demand across other segments underlines Thermo Fisher's strong market position and strategic advantages.

Thermo Fisher Scientific has experienced a significant decline in its financial performance, with adjusted EBIT margin decreasing by approximately 830 basis points to 22.6% from 2021 through 2024. This decline is accompanied by a substantial drop in adjusted gross margin, which fell by about 940 basis points to 42.2%, significantly underperforming the 46.4% gross margin recorded in 2019. The combination of these declining margins signals potential challenges in the company's profitability and operational efficiency, contributing to a negative outlook for its stock.