Original from: 360dx
Wolfe Research said Thursday that it has upgraded Danaher's shares to an Outperform rating from Peer Perform as the firm's growth is improving and it has capital to deploy.
Wolfe also raised the price target for Danaher to $285 per share. On Thursday morning, Danaher's shares were up slightly at $242.99.
Wolfe Research analyst Doug Schenkel wrote in a note to investors that the stock was previously at Peer Perform due to concerns about average Wall Street expectations for a growth inflection, consensus expectations, and valuations. However, he said that the Wall Street estimates now reflect a "more reasonable set of assumptions for a return to normalized growth" and added that the company's "target markets are slowly but surely improving" and valuation appears more reasonable.
Danaher is a "top quality asset that has above average exposure to geographies/product categories that we currently favor," Schenkel wrote.
In addition, he noted that the company is positioned to generate core revenue growth in the high-single-digit percent range, expand its margin, and "advance a legacy of fantastic M&A" with tens of billions in capital to deploy.
"The pandemic hangover lasted longer than many expected, but there is light at the end of the tunnel," he wrote.
Schenkel noted that Danaher's shares have fallen more than 10 percent over the past week and said that the decline is "unwarranted given the fundamental setup remains unscathed."
Last week, Danaher reported a 3 percent rise in Q3 revenues compared to Q3 2023.
