Danaher (DHR) PT Lowered to $275 at Leerink Partners

Leerink Partners analyst Puneet Souda lowered the price target on Danaher (NYSE: DHR) to $275.00 (from $280.00) while maintaining a Outperform rating.

The analyst comments "Bottom Line: We see DHR as the leader in the highly attractive, spec'd-in and recurring rev market of bioprocess tools, while maintaining its position as a diversified consolidator in LST and Dx. While beats across revenue, margins, and EPS in 3Q were mostly driven by a respiratory/ COVID testing pull-forward, the core Biotech/bioprocessing business (which remains central to the stock) continues to show recovery, with HSD q/q order growth and ~1x book-to-bill (BTB). Still, DHR shares were down on the print, likely amidst still-unanswered questions around the company's broader life sciences and Dx businesses (China macro, volume-based pricing impacts, instrumentation recovery), understandably facing higher scrutiny given DHR's near-peak ~25x 2025E EV/EBITDA valuation (vs. peers at ~20x) and 2025E cons. estimates (org. growth ~8%) which could see revisions headed into year-end with China and instrumentation headwinds ongoing. Longer term, we continue to remain bullish on the name given the company's best-in-class position as a high-quality multiyear compounder. We remain OP but lower our PT to $275 from $280 while maintaining our multiple at 26x 2025E EV/EBITDA multiple."

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