This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Thanks to GE, Thermo Fisher Will Buy Life Technologies

GE Healthcare had revenue of $13.1 billion for the first nine months of 2013, which it expects to come to almost $17 billion for the full year. While GE Healthcare is larger than TMO by revenue, it has a broader product line including radiology equipment and health IT solutions where TMO doesn't compete.

The net result of the deal, and the completion of the Life acquisition, is to make TMO closer in size to GE Healthcare, but more tightly focused than its larger rival. Most analysts like the TMO story, with 12 out of 16 rating it a buy or overweight and none rating it an underweight or sell.

The one question analysts have is whether TMO will continue the Life policy of investing heavily in research after the acquisition. If it doesn't, it could show a higher bottom line in the short term in exchange for long-term growth. If it does, the growth in earnings may disappoint, leading to a fall in the share price.

So far analysts seem to be cheering the deal. ISI Group raised its target price on Thermo Fisher to $121.50 recently. The problem is that Thermo Fisher was trading at $110 before the deal. This could be a stock getting ahead of itself.

At the time of publication the author owned shares of GE.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
GE $27.31 0.00%
TMO $127.66 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs