Danaher (NYSE:DHR) shares rose more than 2% intra-day today after it received an upgrade from Hold to Buy from Stifel analysts, who set a $260 price target, citing improved valuation and long-term growth potential despite a subdued near-term outlook.
Following a period of downward earnings revisions and a valuation reset, Danaher shares appear to have stabilized, making the current pullback an attractive entry point for investors with a 12-month horizon. While the company’s 2025 guidance fell short of expectations, Stifel sees opportunities for top-line growth and margin improvements, driven by new cost-saving initiatives.
The company also highlighted reduced risk in Danaher’s first-quarter performance, particularly regarding academic and government demand, areas where other life sciences firms face more uncertainty.
Looking ahead, EPS acceleration over the next year could push earnings toward $9 per share in fiscal 2026, potentially supporting a valuation rebound. While market conditions in the life sciences sector remain volatile, Stifel believes Danaher’s strong fundamentals and leadership in the tools segment make it a compelling long-term investment.