...- Thermo Fisher Scientific Inc.'s financial performance has been trending better than we had expected last year, largely due to increased demand for products that address COVID-19 testing and treatment, which represented about 26% of revenue growth during 2020, with more moderate growth expected in 2021. - Strong operating performance, combined with no material acquisitions, led to adjusted debt to EBIDTA of 1.2x at the end 2020. At this level, we believe the company has considerable debt capacity, which we forecast will be used to fund acquisitions to strengthen its competitive position and return adjusted debt to EBITDA closer to 3x. - While we project Thermo Fisher's current debt capacity will allow it to complete sizable acquisitions while maintaining leverage at or below 3x over the next few years, we see some risk to these projections, given the uncertainty around the future sales trajectory of the company's COVID-19 testing portfolio, and potential integration risks associated with...
