Opinions Stockchase Insights
Danaher Corp.DHRBUYDec 06, 2024
Stockchase InsightsStock price when the opinion was issued
As of Jun 05, 2026. Market Open.
You might be interested:
Owns, but he's selling out of it for an opportunity in TMO. TMO can control more things in its wheelhouse, whereas DHR has to do deals to fill out its portfolio. Both names have been selling off at the same rate in the past 2 months.
Dan Rohinton
It's been frustrating the past few years, but is up 31% since its April lows. They last reported solid numbers backed by growth in their crucial bio-processing division which had been languishing. They beat and bottom lines and reiterated guidance. Their best growth in years is expected in 2026. He will trim if this jumps 10 points.
Caught up in the "tariff war". Healthcare behemoth. Very good track record with its acquisition strategy. Lots of firepower. Should be part of the workaround solution for non-American companies. Inexpensive, great entry level. Likes healthcare. Yield is 0.60%.
(Analysts’ price target is $243.33)
Darren SissonsLoves it. Within tools diagnostics, they boast high growth among its peers. They make the equipment that produces biological drugs. Are exposed to the R&D space, which is seeing less funding due to Washington. The stock took a hit after the Waters-Becton deal, fearing more competition. 80% of revenue is recurring. Medium/long-term this remains a good business. There is a lot of policy noise on pharma, though, from Trump. This and this space needs to see some catalysts, perhaps in the fall, when we see hard numbers on the impact of Washington.
Not much of a dividend. Challenges with global revenues. Beat revenue by 3.5%, but bottom line fell 39%. Underperforming both the sector and the S&P 500. Healthcare sector is super-undervalued, and that could change.
Can trade successfully if you watch technicals closely. Rarely meets analysts' expectations. Don't get greedy; when it hits $220, keep an eye on changing momentum.
Since Covid hit, everything's slowed down. More pressure from the government. Long-term view is that its equipment will still need to be used to develop new drugs. Products needed by universities, governments, hospitals, biotech. Just have to wait for demand to pick up. Lots of opportunity for sales growth, just not at the same pace as before Covid. A buying opportunity.
David DriscollDiversified diagnostics and bio-processing franchise. Good capital allocators. On the upswing in terms of cyclicality. Under-deployed balance sheet can be utilized accretively. Until recently, valuation was coming down. Defensive healthcare, a more resilient vertical than industrials. More complex treatments of the future benefit a name like this (and TMO). Yield is 0.64%.
(Analysts’ price target is $245.38)Dan Rohinton
In recent years, DHR has been in the process of transforming itself from an industrial conglomerate into a pure life science and biotech player with a high degree of recurring revenues by divesting legacy industry assets. The company now possesses a solid profile of highly recurring revenue and strong margins, basically a “software-like” business model.
However, weak organic growth has caused the company’s shares to trade largely sideways in recent years. DHR also repurchased shares aggressively in the recent quarter, which the company did not implement for a long time, indicating that management believes shares are undervalued. That being said, DHR is trading at 28.4x Forward P/E with low single-digit revenue growth, which is certainly not that attractive. However, this is not the company’s issue but rather an industry-wide challenge, as similar headwinds also exist with other players like TMO.
Consensus estimates expect DHR to grow its topline by 7% on average over the next few years. We think now could be a good time to average into the position, but maybe not be too aggressively. We would be comfortable starting a position but only adding more when revenue returns to a solid growth trajectory.
Unlock Premium - Try 5i Free