/Danaher%20Corp_%20logo%20on%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
With a market cap of $166.5 billion, Danaher Corporation (DHR) is a global conglomerate specializing in designing, manufacturing, and marketing professional, medical, industrial, and commercial products and services. Based in Washington, D.C., it operates through key segments including Biotechnology; Life Sciences; Diagnostics; and Environmental & Applied Solutions.
Shares of the industrial and medical device maker have underperformed the broader market over the past 52 weeks. DHR stock has risen 10.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.4%. In 2024, shares of DHR are down marginally, compared to SPX's 23.1% gain on a YTD basis.
Looking closer, DHR has lagged behind the Health Care Select Sector SPDR Fund's (XLV) 10.9% returns over the past 52 weeks and a 4% YTD gain.
Despite reporting better-than-expected Q3 adjusted EPS of $1.71 and revenue of $5.8 billion, Danaher’s shares fell nearly 4% on Oct. 22 due to a weak outlook for Q4, with the company projecting low-single-digit declines in adjusted core sales. Investors were also concerned by the 19.2% year-over-year drop in operating profit and the significant margin contraction, which reflected potential challenges in the business. Furthermore, the 4% year-over-year decline in adjusted free cash flow and a drop in cash reserves raised concerns about the company’s financial stability moving forward.
For the current fiscal year, ending in December, analysts expect DHR's EPS to decline marginally year-over-year to $7.51. However, the company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 14 “Strong Buy” ratings, two “Moderate Buy,” and five “Holds.”
This configuration is more bullish than three months ago, with 12 “Strong Buy” ratings on the stock.
On Oct. 24, Stifel analyst Daniel Arias raised Danaher’s price target to $265 and maintained a “Hold” rating, citing stronger-than-expected Q3 results driven by Cepheid and higher bioprocess demand. While questions about 2025 growth remain, a low-teens EPS growth trajectory toward $9.75+ in FY26 could support moderate upside potential.
The mean price target of $291.30 represents a premium of 26.4% to DHR's current levels. The Street-high price target of $315, implies a potential upside of 36.7% from the current price.
