Shares of Danaher Corp (DHR) took a dip in early trading on Tuesday, following an analyst report that painted a cautiously optimistic picture for the company’s future. Stifel analyst Jacob Johnson initiated coverage of Danaher with an ‘Overweight’ rating and a price target of $315, predicting a gradual recovery for the company beginning in 2025. Johnson believes Danaher, now a pure-play life sciences tools company after spinning off its Environmental & Applied Solutions business in 2023, is poised for high-single-digit growth in the long term.
Danaher’s shift to a life sciences focus has positioned it for success, according to Johnson. The company’s emphasis on higher growth, recurring revenue, and improved margins aligns with the broader life sciences sector, making it attractive to investors. Despite facing headwinds in recent months due to bioprocessing destocking, a challenging funding environment, and the lingering impact of the COVID pandemic, Johnson remains optimistic about a turnaround, particularly in the bioprocessing sector in 2025.
While Danaher’s shares dropped by 1.05% to $275.07 at the time of publication, the analyst’s positive outlook suggests a potential for future growth. This report adds another layer of complexity to the ongoing story of Danaher Corp and its evolving business strategy.
