Morgan Stanley Bull Note Pushes TMO Higher

The equity is eyeing its fourth consecutive win

Deputy Editor
Sep 14, 2020 at 10:09 AM
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The shares of Thermo Fisher Scientific Inc. (NYSE:TMO) are up 1.2% at $436.12 this morning, after Morgan Stanley initiated coverage with an "overweight" rating and a $485 price target -- a 12.6% premium to Friday's close. The analyst looked to strength in the Biopharma sector and predicted that TMO would "meaningfully outpace peers," citing the firm's diversification, resilience and flexibility. 

TMO is pushing back toward its Sept. 2 all-time high of $441.96 today, on pace to notch its fourth consecutive win. Though the stock pulled back last week, it was deftly captured by its 50-day moving average, and now sports a roughly 45% year-over-year lead. 

The majority of analysts covering TMO were already bullish on the stock, coming into today. Eleven of the 13 in coverage call the stock a "buy" or better, while the 12-month consensus price target of $450.72 is a 4.5% premium to Friday's close. 

Options players, on the other hand, have rarely been more bearish. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TMO's 10-day put/call volume ratio of 3.61 stands higher than 96% of readings from the past year, suggesting a much healthier appetite for long calls of late.  

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