The analyst notes management's concern about broad-based cash conservatism from biotech customers, incremental weakness in China, possible destocking, and overall industry decline.

The analyst reduced estimates for revenue and EPS to $42.70 billion (from $43.65 billion earlier, vs. consensus $43.359 billion) and $21.50 (from $22.33 earlier) for FY23. 

Knight cut the estimates for revenue to $42.70 billion (from $47.35 billion vs. consensus $45.043 billion) and EPS to $21.75 from $24.55 for FY24. 

The analyst doesn't see near-term visibility with significant COVID headwinds expected to continue through FY24, weak funding environment for emerging biotechs, cash conservatism from large pharma customers, and a slowdown in China pharma markets.

Also, Morgan Stanley lowered the price target to $545 from $600 and maintained an Overweight rating. 

Raymond James analyst cut the price target to $515 from $580 and reiterated the rating at Outperform.

Citigroup reduced the price target to $530 from $625 and kept the Buy rating.

Price Action: TMO shares are trading higher by 2.02% at $441.79 on the last check Thursday.