Is Thermo Fisher (TMO) the Most Undervalued Stock in Healthcare Right Now? Analysts and Investors Are Torn
Wall Street Bulls See 30%+ Upside, While Others Urge Caution Amid Strategic Shifts and Downgrades
Thermo Fisher Scientific, ticker TMO on the New York Stock Exchange, is seeing a surge in attention as everyone from Wall Street analysts to retail investors debate its current valuation and future upside. In the latest quarter ending June 28, 2025, the company posted net income of $1.62 billion—$4.28 per share—and adjusted earnings landed at $5.36, outperforming the consensus forecast of $5.22. Total revenue rose 3% to $10.85 billion, also exceeding expectations, while laboratory products sales alone reached $6 billion. CEO Marc Casper credited the robust performance to continued demand for life-science tools and vaccines, as well as the company’s Practical Process Improvement (PPI) system that helped navigate tariffs and supply-chain issues.
With the stock trading around $414–$415, far below its 52-week high near $628, many analysts see a clear gap between market price and potential value. According to consensus data, average price targets hover between $535 and $546—implying upside of roughly 30% from current levels. Some bull cases envision targets as high as $600–$670, suggesting value investors could be overlooking sustained long-term growth in diagnostics, pharmaceutical services and lab equipment.
Yet not all ratings are rosy. On July 24, UBS downgraded its rating on TMO to Neutral, lowering its price target to between $460 and $500, while TD Cowen reduced its own target to $550 from $570—though still labeled Thermo Fisher a Buy. HSBC, Barclays, Evercore and Raymond James also revised their targets lower or maintained cautious outlooks, reflecting concern over muted organic growth and macro healthcare headwinds.
Adding to the complexity, Thermo Fisher continues to refine its strategic footprint. Earlier this year the company agreed to acquire Solventum’s purification and filtration business for about $4.1 billion in cash—a move expanding its commercial and industrial biotech capabilities. At the same time, it initiated the potential divestiture of a significant diagnostics segment—including its microbiology unit—for an estimated $4 billion. That unit generates roughly $1.4 billion in annual revenue and $300 million in adjusted earnings. Thermo Fisher brought in advisers to gauge interest from private equity buyers, although retention remains a possibility.
This wave of acquisitions and portfolio rebalancing comes as investors evaluate whether the healthcare powerhouse can meaningfully grow in its core diagnostics and lab equipment lines or if it should shed low-growth assets to simplify the business. Despite this, share performance has slipped about 20–25% in recent months, partly due to investor unease over NIH funding cuts and broader healthcare volatility.
For the healthcare sector, TMO remains a top-line player: a global leader in laboratory instruments, specialty diagnostics and pharmaceutical services. Operating within the medical equipment and life-sciences industry, the company serves hundreds of thousands of scientific, clinical and biotech customers worldwide—and continues to expand via M&A and internal innovation.
What stands out now is how multiple narratives intersect on the same ticker symbol. One narrative sees TMO as undervalued with up to 30% upside based on the average price target of $546, with bull houses forecasting beyond $600. Another focuses on subdued analyst sentiment, recent downgrades from UBS, TD Cowen and others, and a cautious organic growth forecast hovering near 1% for Q2. Meanwhile, strategic shifts—like the recent Sanofi manufacturing site acquisition and potential diagnostics divestiture—signal that the company is proactively reshaping itself.
The convergence of stronger-than-expected earnings, strategic repositioning, rating revisions and price target discrepancy makes for a compelling SEO-rich story. Readers interested in “TMO price target”, “Thermo Fisher undervalued”, “healthcare acquisitions”, or “TMO earnings beat” will find this topic highly relevant—and likely impactful for investment decisions.