William Blair analyst Matt Larew has maintained their bullish stance on DHR stock, giving a Buy rating on February 13.
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Matt Larew has given his Buy rating due to a combination of factors regarding Danaher’s financial outlook. The company has announced a significant cost-saving initiative aimed at achieving at least $150 million in annual pretax savings by 2025. These savings are expected to be incremental, providing an upside to the company’s previously issued guidance and potentially adding $0.17 to the 2025 EPS estimate, resulting in an updated forecast of $7.79 per share.
Despite recent pressure on Danaher’s stock, stemming from a weaker EPS guidance compared to peers, this proactive cost management and potential share repurchase activities could align EPS growth more closely with industry averages. The announced plan underscores management’s commitment to aligning expenses with growth expectations, which, along with an improving environment in the bioprocessing and life sciences sectors, suggests potential for stock appreciation. Furthermore, Danaher’s current trading multiple, while in line with peers, is at a discount to its historical average, indicating potential for valuation growth as cost-saving measures take effect.
In another report released on February 13, Bank of America Securities also reiterated a Buy rating on the stock with a $265.00 price target.