Danaher: Buy Rating Reiterated on Broad-Based Outperformance and Premium-Justified Growth Outlook

William Blair analyst Matt Larew has maintained their bullish stance on DHR stock, giving a Buy rating on January 7.

Matt Larew has given his Buy rating due to a combination of factors that highlight Danaher’s stronger-than-expected operating performance and solid outlook. He notes that preliminary fourth-quarter 2025 revenue growth is set to exceed prior expectations, with total sales advancing in the mid-single-digit range and core revenue tracking toward the upper end of management’s guidance. This upside is supported by robust bioprocessing results, where both consumables and equipment posted healthy growth, and by improving trends in Life Sciences instruments, including mid-single-digit gains at SCIEX. In addition, management expects full‑year 2025 adjusted EPS to land near the top of its guidance range, signaling disciplined execution and earnings resilience.

Larew also emphasizes that the recent quarter reflects broad-based strength across the portfolio, with continued momentum in Diagnostics complementing the gains in bioprocessing and Life Sciences. He acknowledges that, given several favorable macro developments for Danaher and its sector in the back half of 2025, some degree of outperformance was anticipated, but the company has nonetheless delivered another better‑than‑expected quarter. While the shares trade at a premium to peers and slightly above their long-term average valuation, he views this premium as justified by the company’s consistent execution, diversified growth drivers, and improving underlying demand environment. On balance, these factors support his decision to reiterate a positive, Buy‑equivalent recommendation on Danaher’s stock.

In another report released on January 7, TD Cowen also maintained a Buy rating on the stock with a $270.00 price target.