UPDATE: ISI Group Initiates Thermo Fisher Scientific with Overweight, $60 PT on Acquisition-Driven Growth

ISI Group initiated its coverage on Thermo Fisher Scientific

with a rating of Overweight and a price target of $60. ISI Group noted, "We are initiating coverage on shares of Thermo Fisher Scientific with an Overweight rating and a price target of $60.00, which on a forward basis equates to ~10x EV/EBITDA and ~11x operating EPS. Our thesis for TMO is based on strong new product momentum and recent acquisitions driving solid growth in Analytical Technologies and Specialty Diagnostics, a modest rebound in Lab Products & Services growth given share gains in the channel, and increased focused on emerging market opportunities and consistent operating margin expansion yielding massive FCF allowing for shareholder value enhancement." Thermo Fisher Scientific closed at $51.58 on Monday.