Shares of Danaher Corp (NYSE:DHR) tanked in early trading on Tuesday.
Stifel analyst Jacob Johnson says the company is poised for a gradual recovery in 2025. It could generate high-single-digit growth in the longer term, he predicts.
The Danaher Thesis: Johnson initiated coverage of Danaher with an Overweight rating and price target of $315.
Danaher completed a spinoff of its Environmental & Applied Solutions business in 2023. The company then emerged as a "pure-play LS tools company with operating companies in the Biotechnology, Life Sciences, and Diagnostics end-markets," Johnson added.
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The EAS spinoff eliminated much of Danaher's industrial exposure. As a life sciences company, it remains focused on "higher growth, recurring revenue, and margins that warrant a higher multiple," the analyst stated.
"Like the broader space, DHR has faced headwinds over the last 12 to 18 months from bioprocessing destocking, the funding environment, China, and the roll-off from COVID," he wrote, while expressing optimism around "a gradual recovery in 2025 (with a good year in bioprocessing)."
DHR Price Action: Danaher shares declined by 1.05% to $275.07 at the time of publication on Tuesday.
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