Leerink analyst Dan Leonard sees Thermo Fisher (TMO) acquisition of FEI Company (FEIC) as logical, since electron microscopy represented a gap in Thermo Fisher's scientific instruments offering. The analyst notes, however, that the acquisition increases the cyclicality of Thermo Fisher's business, since FEI is "meaningfully exposed" to the semiconductor industry, but this can likely be readily absorbed within Thermo Fisher's $18B annual turnover. Leonard expects Thermo Fisher to continue to successfully leverage its balance sheet and scale to generate double-digit EPS growth, and reiterates an Outperform rating and $158 price target on the shares.

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