Goldman Sachs added this lab equipment manufacturer to its ‘conviction buy list’

Shares of Thermo Fisher Scientific Inc (NYSE: TMO) are up more than 30% on a year-to-date basis, but Goldman Sachs says “multiple growth drivers” will push the stock further up in 2022.

Goldman Sachs sees 13% upside in Thermo Fisher

In a note on Friday, Goldman Sachs’ Matthew Sykes added Thermo Fisher to the firm’s “conviction buy list” with a price target of $690 that represents a 13% upside from here. The analyst wrote:

Strong funding in biopharma and a pent-up demand, Sykes said, were some of the factors that could drive growth in the future.

The news comes a week after Thermo Fisher raised its guidance for revenue in 2022. The lab equipment manufacturer now forecasts an over 10% growth in revenue next year versus a 10% decline it had guided for earlier.

Gilman Hill’s Jenny Harrington agrees

Gilman Hill’s Jenny Harrington, who also owns the stock, agreed with Goldman Sachs’ bullish call on CNBC’s “Halftime Report”. Dubbing the price target “reasonable”, she said:

Harrington is confident that Thermo Fisher will continue to “benefit from higher COVID testing”. Diversified business and a reliable management team that has delivered 8.0% organic growth were among other reasons why she likes the stock.