Liontrust Sustainable Future Defensive Managed Fund on Thermo Fisher Scientific
Thesis
Liontrust views Thermo Fisher as a key enabler of healthcare and life-sciences innovation through its instruments, reagents, consumables, software and services. Second-quarter revenue rose 10% to $12.0 billion, organic growth was 5%, and adjusted earnings per share increased 13%. Improving activity among biopharma and research customers supports the thesis that end-market spending is recovering from the post-pandemic slowdown. The company’s scale, diversified customer base and recurring revenue support cash generation and reinvestment for continued growth.
“Its scale, diversification and high proportion of recurring revenues underpin strong cash generation, providing the capacity to reinvest in further growth.”
Key risks
- A slower-than-expected recovery in biopharma and research spending following the post-pandemic slowdown.
- Potential healthcare policy changes around the US midterm elections.
- Higher inflation and bond yields weighing on the wider economy and growth-stock sentiment.