It’s been a tough year so far for Thermo Fisher Scientific Inc (NYSE: TMO), with the stock down nearly 20%, but Jim Lebenthal recommends patience because TMO will get its “mojo” back.
Lebenthal backs holding TMO through the sell-off
Lebenthal sees the recent sell-off as a period of consolidation, a characteristic of the high-flying stocks. Endorsing sticking to TMO, he said this afternoon on CNBC’s “Halftime Report”:
Multiple had to come down a little bit, but for long-term investors like myself, TMO is a hold. And if you don’t own it, you should add to it. In an ageing demographic for the developed world, what Thermo Fisher does is very much needed.
Gilman Hill Asset Management’s Jenny Harrington also agreed with his outlook on the stock. Harrington is also a long-term investor in Thermo Fisher that currently trades at a PE multiple of 27.55.
Thermo Fisher reported solid results for its fiscal Q4
Earlier this month, Thermo Fisher reported its financial results for the fourth quarter that handily beat Wall Street expectations. Reiterating his positive stance on TMO, Lebenthal said:
Thermo Fisher Scientific is a well-managed, well-run company. It’s highly profitable and still growing. So, yes, it will get its mojo back. I don’t know if it’s three weeks or three months, but it’s not something that you’ll have to wait long for.
Also on Wednesday, Thermo Fisher signed a long-term agreement with Moderna Inc for dedicated large-scale manufacturing of Spikevax in the United States. The strategic collaboration will also see the two companies collaborating on other candidate mRNA therapeutics.
A notable maker of COVID tests, Thermo Fisher was a pandemic beneficiary that had its shares more than double between April 2020 and December 2021.
The post Expert opinion: ‘Thermo Fisher will get its mojo back’ appeared first on Invezz.
