Deutsche Bank Reiterates Buy Rating on Thermo Fisher (TMO)

Deutsche Bank is out with a research report this afternoon, where it reiterates its Buy rating on Thermo Fisher TMO. The DB analysts cited the company's recent earnings report, noting: 1. “EPS well above Street despite top-line headwinds, driven by margin expansion and tax rate/buyback impact 2. Asia-Pacific growth highlights 4Q performance, with China/India up over 20%. 3. FY11 EPS guidance initiated at $4.00-$4.10, with organic growth expected to be ~4% at the midpoint.” As for valuation, the analysts remarked, “Our PT is based on several methodologies (DCF, P/E comparables), but equates to a P/E of 17x our FY11 operating EPS estimate of $4.25 and 15x our FY12 operating EPS estimate of $4.95, with $74.00 representing the midpoint of our DCF range.”