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TSX climbs on BoC cut, Wall Street fadesTSX and Dow gain for the weekEarnings extend rallyThis summary was created by AI, based on 9 opinions in the last 12 months.
Danaher Corp. has been facing challenges recently, particularly with tepid revenue growth and a high forward P/E ratio of 28. While some experts see the potential for recovery, especially as the healthcare sector may rebound next year, others express concerns over the company's ability to grow organically. There is a mix of optimism about Danaher's transformation into a biotech player with recurring revenues and caution regarding its valuation and performance. Recent share buybacks suggest management believes the stock is undervalued, and analysts project modest revenue growth in the coming years. Overall, while there are opportunities for entry, the consensus leans towards a wait-and-see approach given the current economic conditions.
He bought this in early 2022, though it was mired in an inventory glut. He's stuck with it ebcause he expected it to bounce back. It still has a high PE though. Is down 19% from its August high, but is now a good entry point. An analyst just upgraded it. He expects the healthcare sector to come back next year.
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.
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DHR is expensive at 28x forward earnings and it has not been able to fully recover to its all-time highs in 2021 when it traded above $330. DHR has been trading quite choppily since. It is flat year-to-date but up 11% over the last year. We do think that DHR could be a good long-term healthcare play and some of the current risks/fears due to the new US administration may be slightly overstated for healthcare stocks.
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When he recommended this last summer, he was expecting the glut in bioprocessing equipment to finally end. They reported good results last October, but lowered guidance. In late October, the entire sector seemed to find its footing when interest rates peaked, but was it out of the woods? Last week, DHR reported healthy revenue and earnings beats, but issued very disappointing guidance with organic revenue to be down YOY. Shares slid 5% in pre-markets. Turns out that management was merely being conservative. During the conference call, DHR said that the world ex-China should return to grow later this year as the inventory gut ends. So, but it now.
Pure-play life science company. Covid brought a bump in orders, sales, and earnings. Revenue to China has come off. The year's been hard. Future looks much better, as it will continue to be the fulcrum in drug discovery (testing) and manufacturing. Yield is 0.55%.
(Analysts’ price target is $232.30)Danaher Corp. is a American stock, trading under the symbol DHR-N on the New York Stock Exchange (DHR). It is usually referred to as NYSE:DHR or DHR-N
In the last year, 8 stock analysts published opinions about DHR-N. 7 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Danaher Corp..
Danaher Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Danaher Corp..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
8 stock analysts on Stockchase covered Danaher Corp. In the last year. It is a trending stock that is worth watching.
On 2025-04-03, Danaher Corp. (DHR-N) stock closed at a price of $198.7.
Expensive at 28x PE with tepid revenue growth. They're talking cost cutting, which is encouraging for profits, but it's making up for fundamental weakness.