NEW YORK (TheStreet) -- Danaher (DHR) is on a roll following its recent acquisition of Pall Corporation coupled with its decision to split into a life sciences company and an industrial company. Chase Growth Fund manager Peter Tuz said Monday he expects the momentum to continue.
"We expect Danaher to grow earnings approximately 11% per year for the next three to four years," Tuz said. "But it is selling for basically a market multiple at this time and we believe it should be selling for a better-than-market multiple because of its good history of growth by acquisition."
Danaher shares are up 4.5% in the past month compared to a flat S&P 500. The company is trading at 18 times 2016 full year estimated earnings.
"Growth is hard to find these days and Alliance Data has put together a string of 15% to 18% earnings growth going back three to five years largely by successfully acquiring private label credit card businesses, as well as niche companies in the consumer loyalty business," said Tuz.