President Donald Trump’s second term is marked by a focus on cutting Federal spending, including healthcare funding. Despite the economic uncertainty, market analysts see opportunities in the life science tools sector, with Scotiabank analyst Sung Ji Nam predicting growth acceleration in 2026. Nam highlights Danaher Corporation (DHR) as a top stock pick due to its strong position in biotechnology, diagnostics, and life sciences. Danaher’s recent earnings report showed better-than-expected results, with a strong free cash flow. Nam maintains a Sector Outperform (Buy) rating on DHR with a $275 price target, indicating a 41% upside potential.
Thermo Fisher Scientific (TMO), a medtech stock, specializes in producing supplies and equipment for medical and research laboratories. The company has benefited from the healthcare industry’s rapid expansion, providing a solid foundation for growth. Thermo Fisher is a leading company in the healthcare and medical research fields, boasting a market cap of $157 billion and generating $42.9 billion in revenue last year. The company operates through multiple divisions, with laboratory products and biopharma services being the largest, accounting for over half of the revenue. Thermo Fisher recently beat revenue and earnings forecasts in its 1Q25 report. Analysts are optimistic about the company’s future growth potential, with an Outperform rating and a price target of $590, suggesting a 39% increase in the stock. Overall, the stock has a Strong Buy consensus rating based on 19 recent analyst recommendations.
Sources:
1. https://www.tipranks.com/stocks/tmo/forecast?utm_source=finance.yahoo.com&utm_medium=referral
2. https://blog.tipranks.com/wp-content/uploads/2025/07/image-1373.png?utm_source=finance.yahoo.com&utm_medium=referral
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