Scotiabank upgraded Thermo Fisher Scientific (NYSE:TMO) to Sector Outperform from Sector Perform and set a new price target of $590, signaling renewed optimism for the life sciences giant as policy-related pressures begin to ease.

Despite being the largest player in the life science tools space, Thermo Fisher’s stock has been weighed down this year by uncertainty surrounding U.S. healthcare and trade policies. However, Scotiabank believes the sell-off has gone too far, underestimating the company’s scale, innovation leadership, and operational strength.

The firm sees Thermo Fisher as well-positioned to regain momentum once regulatory headwinds begin to clear. With its unmatched global footprint and upcoming region-specific capabilities set to expand by next year, the company is expected to sharpen its strategic focus and better align its business with the strongest areas of market demand.

As the broader industry environment becomes clearer in the second half of the year, Scotiabank anticipates Thermo Fisher will be able to fine-tune its operations and unlock further value, making it one of the top rebound candidates in the sector.