Danaher Corp (NYSE:DHR) shares fell in early trading on Thursday, despite the company reporting upbeat third-quarter results.
Here are some key analyst takeaways:
- TD Cowen analyst Dan Brennan reiterated a Buy rating and raised the price target from $255 to $270.
- Guggenheim Securities analyst Subbu Nambi maintained a Buy rating and a $250 price target.
Check out other analyst stock ratings.
TD Cowen: The latest earnings call was the first under new CEO Julie Sawyer Montgomery. Brennan said in a note that Sawyer Montgomery emphasized:
- The need and opportunity for better execution, including driving market share gains via more collaboration between businesses
- Greater focus on innovation
- More discipline with capital allocation
"There was no quantification of how the strategy can influence growth (or margins), but it’s only a few weeks into her tenure as CEO," the analyst wrote.
Meanwhile, Danaher’s demand backdrop has improved, and management’s conservative outlook creates a "more achievable ’27 starting point," he further noted.
Guggenheim Securities: Danaher revenue "appears" to miss estimates, with Biotechnology being impacted by around $80 million of revenue adjustment from tariffs, Nambi said. Of the 20 cents per share of adjusted earnings reported, about 10 cents per share were from tariffs, he added.
While management raised the full-year adjusted earnings guidance, this "only reflects the operational portion," with plans to "reinvest the tariff benefit in productivity and new product launches," the analyst wrote.
He noted that adjusted gross margin improved even after excluding tariffs.
The reduction in fourth-quarter expectations was not a surprise, given the prior projections were aggressive, Nambi said. "The 4%-5% outlook for 2027 also makes sense to us, considering the recent challenges and the new CEO coming in," the analyst further stated.
DHR Price Action: Shares of Danaher had declined by 1.87% to $229.49 at the time of publication on Thursday.
Danaher Analysts Raise Their Forecasts Following Better-Than-Expected Q3 Earnings
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