Director Alex Morozov of Morningstar expects life science firms to see growth moderating in 2017. Therefore, he is recommending Thermo Fisher Scientific Inc. as a defensive play.
If you really don’t want to expose yourself to any kind of swings in capital spending cycles, Thermo Fisher is probably one of the better companies out there and has a very predictable catalog business. If you are running a lab and performing routine operations day to day, you are going to need Thermo Fisher supplies.
Thermo Fisher’s catalog is by far the largest catalog in the life science space. It really is a go-to supplier for everything. It is like a one-stop shop for lab supplies. Given the current nature of its consumables revenue, it is also much more immune to any kind of swings in cap spending. Thermo Fisher is probably a better defensive play if you think the demand will decelerate as we do.
Alex Morozov
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