BofA Raises Thermo Fisher (TMO) Target as Biopharma Recovery Comes Into View

Thermo Fisher Scientific Inc. (NYSE:TMO) is included among the 14 Best Pharma Dividend Stocks to Buy in 2026.

On December 15, Bank of America raised its price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $700 from $650 and kept a Buy rating on the shares. The firm said it was updating price targets across its Life Sciences & Diagnostic Tools coverage. According to the analyst, current headwinds are expected to ease, with markets likely to return to more normal conditions in 2026. BofA sees the biggest opportunity coming from a recovery in biopharma spending. That outlook leads the firm to favor companies with heavier exposure to research and development, where demand tends to rebound first when budgets loosen.

Earlier in October, Thermo Fisher Scientific Inc. (NYSE:TMO) said it would acquire privately held data management company Clario for up to $9.4 billion. The move strengthens Thermo Fisher’s clinical trial research business at a time when demand in the US is picking up again. The deal includes an upfront payment of about $8.88 billion, plus $125 million due in January 2027 and up to $400 million in earn-out payments tied to Clario’s performance in 2026 and 2027. It marks Thermo Fisher’s third major acquisition this year, reflecting its push to benefit from pharmaceutical companies’ expanding drug development and manufacturing activity in the US.

The acquisition also shifts the company deeper into clinical development. That area is seen as a “more steadily growing and attractive area” than early-stage research and drug discovery, according to Puneet Souda of Leerink Partners.

Thermo Fisher Scientific Inc. (NYSE:TMO) operates as a global supplier of analytical instruments, clinical development solutions, specialty diagnostics, and laboratory, pharmaceutical, and biotechnology services.

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