Story updated at 9:50 a.m. to reflect market activity.
Danaher gained 0.7% to $76.82 in morning trading.
The bank set a price target of $88 for the company. According to Citigroup analysts Danaher has multiple potential catalysts.
Separately, TheStreet Ratings team rates DANAHER CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate DANAHER CORP (DHR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DHR's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- DHR's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, DHR has a quick ratio of 1.58, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for DANAHER CORP is rather high; currently it is at 57.43%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.43% is above that of the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- DANAHER CORP's earnings per share declined by 17.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DANAHER CORP increased its bottom line by earning $3.80 versus $3.23 in the prior year. For the next year, the market is expecting a contraction of 1.4% in earnings ($3.75 versus $3.80).
- You can view the full analysis from the report here: DHR Ratings Report