On Thursday, Stifel analysts reduced the price target for Danaher Corporation shares (NYSE:DHR) to $260 from the previous target of $265, while maintaining a Hold rating on the stock. The new target sits within the broader analyst range of $240-$310 for the $165 billion life sciences company. The adjustment follows Danaher's conservative stance on its initial 2025 outlook, which, according to Stifel, did not fully anticipate some of the finer details that emerged. These details included diagnostics (Dx) being flat at the low end, Life Sciences expected to be down in the mid-single digits in the first quarter, and operating margins remaining flat throughout the year.
The earnings per share (EPS) miss was characterized as an unanticipated factor that contributed to a more complex situation than expected. Despite this, there was a silver lining: the bioprocess business's exit rate and order commentary indicated that the Biotech segment should follow a positive trajectory over the year. According to InvestingPro data, 12 analysts have recently revised their earnings upwards for the upcoming period, and the company maintains a "GOOD" financial health score.
Following the adjustment in price target and estimate revisions, Danaher stock is now trading at approximately 26 times the 2026 earnings, which is viewed as a more reasonable valuation compared to previous fiscal year projections. The stock has taken a significant hit, falling nearly 9% over the past week and currently trades near its 52-week low of $223. The day's developments might serve as a clearing event for Danaher stock, although the analysts noted that any significant multiple expansion would be unlikely in a year where only 3% growth is expected.
In other recent news, Danaher Corporation has experienced a series of developments that have impacted its stock price targets. RBC Capital Markets has reduced its price target for Danaher to $277 from $299, while maintaining an Outperform rating. This adjustment followed Danaher's release of its fiscal year 2025 guidance, which projects earnings per share at approximately $7.60, slightly below Wall Street's expectations.
Simultaneously, BofA Securities has adjusted its price target for Danaher, reducing it to $265 from the previous $290, but reiterated a Buy rating. This adjustment was made after reviewing the long-term financial projections for the company.
In relation to mergers and acquisitions, Danaher's stock observed an uptick following robust financial results from German life sciences company Sartorius AG (ETR:SATG). Moreover, Guggenheim initiated coverage on Danaher shares with a Buy rating and a price target of $275, expecting a return to high single-digit revenue growth in the coming quarters.
In other company news, the U.S. Commerce Department announced new export controls on biotechnology equipment, leading to a decline in Danaher and other related stocks. These are the recent developments for Danaher Corporation.
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