Diamond Hill Capital Management, LLC on Thermo Fisher Scientific Inc.
Thesis
Diamond Hill views Thermo Fisher as a way to benefit from an improvement in spending across life-sciences end markets. Second-quarter results were strong and customer activity improved in core research markets. The stronger operating data increased confidence that demand can continue recovering. The position fits the manager’s preference for competitively positioned companies with credible earnings prospects.
“improving customer activity across key life sciences end markets, reinforcing confidence in continued demand recovery.”
Key risks
- Life-sciences customer activity could soften after the initial recovery
- Delayed or weaker end-market demand recovery would pressure growth