The firm has an "equal weight" rating on shares of Cepheid, a Sunnyvale, CA-based molecular diagnostics company.
As part of the deal, which is expected to close by the end of 2016, Cepheid will become a part of the professional, medical, industrial and commercial products company's diagnostics division.
Barclays said Danaher's reasoning behind the deal was clear, as Cepheid is a "leading asset" in molecular point-of-care and one of the "fastest growing industries" the firm covers.
"That said, the timing for us is intriguing, as Cepheid sells below an all-time high on the cusp of a number of major product launches and opportunities to turn to profitability, offset by risks on the reimbursement horizon from PAMA and new competition expected for hospital acquired infections," Barclays wrote in an analyst note.
Separately, Cowen downgraded Cepheid to "market perform" from "outperform" earlier today, the Fly reports. BTIG also reduced Cepheid's stock rating to "neutral" from "buy" following the acquisition.
Shares of Cepheid were higher in mid-afternoon trading on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Cepheid as a Sell with a ratings score of D+. This is driven by a few notable weaknesses, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here:
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