Morgan Stanley Reports on Thermo Fischer Scientific

Morgan Stanley commented on Thermo Fischer Scientific TMO in a report released today. In the report, Morgan Stanley was positive in its assessment of the company. Morgan Stanley writes, "The analyst day supports our positive thesis with 1) solid core business trends, 2) improving visibility on returning capital to shareholders, and 3) upside from the Dionex and Phadia integrations. With the investment debate focused on multiple expansion, the market's view of returns on recent acquisitions will drive the multiple, and we see room for expansion as evidence of strong synergy realization from Dionex and Phadia emerges to support a three-year EPS revenue CAGR of 17-20%. Finally, the capital deployment policy took a step forward in our view with Thermo for the first time incorporating future buybacks into guidance and committing ~50% of FCF to repurchases." Morgan Stanley currently has an Overweight rating on Thermo Fischer Scientific and a price target of $64. Shares of TMO closed at $64.19, down $0.03 from the opening bell.