Auriga Adjusts Earnings Estimates On Thermo Fisher Scientific

According to Auriga, Thermo Fisher Scientific TMO signed agreements to divest Athena Diagnostics and Lancaster Labs, completed a $2.2B senior note offering, redeemed all $329MM of its 3.25% convertible senior subordinated notes, and announced a new $750MM share repurchase plan during the first quarter. Auriga reported that given these events, it has taken the opportunity to adjust its earnings estimates for 1Q11 and 2011. “Despite all the moving parts, we believe TMO's growth fundamentals remain solid. In view of TMO's broad product portfolio, increasing exposure to emerging markets, potential competitive enhancements in Mass Spectrometry (updates possible at ASMS in June), and steady underlying end-market demand, combined with an attractive valuation, we reiterate our Buy rating and $66 price target.” Thermo Fisher Scientific closed yesterday at $54.63.