Thermo Fisher Scientific's (TMO) ongoing execution and continuing end-market improvement provide investors with additional proofs that building blocks to high-single-digit growth by 2028 are "fundamentally sound," Deutsche Bank said in a note Friday.

The skew of financial performance is to the upside with the company's relatively cautious interim outlook on academic and government customer group and China territory, Deutsche Bank said.

Thermo Fisher Scientific's mid-single-digit organic growth in H2, following 5% growth in Q2, should give greater confidence in the sector's cyclical acceleration and attract more fund flows, according to the note.

Deutsche Bank reiterated its buy rating on the stock and raised its price target to $720 per share from $635.

Price: 671.97, Change: -6.42, Percent Change: -0.95