Wall Street Zen Raises Danaher to Buy After Quarterly EPS Beat

Wall Street Zen upgrades Danaher

Wall Street Zen raised its rating on Danaher Corp. to “buy” from “hold” in a note issued to investors on Monday, according to reports published October 27 and October 28. The reports did not provide the analyst’s reasoning or target price for the Wall Street Zen rating.

The upgrade follows Danaher’s quarterly earnings release on October 21, when the company reported $2.11 in earnings per share against a consensus estimate of $1.92.

Other firms retain positive ratings

Several other firms also issued positive views on Danaher around the upgrade. On October 22, Stifel Nicolaus raised its price objective to $260 from $220 and maintained a “buy” rating, while Citigroup increased its target to $270 from $230 and retained a “buy.”

Also reporting on October 22, UBS Group reaffirmed a “buy” rating and set a $260 price objective. A separate report identified Robert W. Baird raising its target to $254 from $246 with an “outperform” rating and TD Cowen lifting its target to $270 from $255 with a “buy.” Weiss Ratings raised Danaher from “hold (c-)” to “hold (c)” on September 16.

Earnings beat EPS estimate

Danaher reported quarterly revenue of $6.55 billion, compared with an analyst estimate of $6.56 billion. Revenue increased 8.3% from the same quarter a year earlier, when the company reported $1.89 in earnings per share.

The reviewed reports did not identify whether the $2.11 quarterly earnings figure was GAAP or adjusted, so the measure should not be labeled as either basis without further disclosure.

Broader analyst view and market metrics

MarketBeat data cited in the October 27 and October 28 reports showed a consensus rating of “Moderate Buy” and an average price target of $242.91 for Danaher. The reports also listed one Strong Buy rating, 18 Buy ratings and four Hold ratings.

The October 27 report put Danaher’s market capitalization at $163.78 billion, its price-to-earnings ratio at 38.10, its price-to-earnings-growth ratio at 2.89 and its beta at 0.76. It also reported a quarterly net margin of 16.91% and return on equity of 11.17%, although the source did not provide the accounting basis or comparison period for those metrics.

Dividend and investor holdings

The October 27 report said Danaher announced a quarterly dividend of $0.40 per share for shareholders of record on September 30, with payment scheduled for October 30. The report described that amount as $1.60 annualized and a 0.7% yield.

Recent filings summarized by the reports showed mixed institutional activity. Prime Capital Investment Advisors increased its Danaher holding by 0.5% in the third quarter, while Essential Investment Partners raised its stake by 34.6%, Veery Capital by 3.1% and Meridian Financial Partners by 1.2%. Studio Investment Management also increased its position by 3.3% in the second quarter. These changes describe reported holdings and do not establish a common investment strategy across the firms.