11:55 AM EDT, 03/18/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our target to $279 from $268, 31.6x our 2025 view, a premium to DHR's five-year historical forward P/E average. We lower our 2024 estimate by $0.25 to $7.86 as we expect a more muted first half due to continued softness in China (13% of sales in 2023), though we also expect a recovery and less difficult comparisons in the second half of 2024. We keep our 2025 estimate at $8.84, which points to a 12.5% increase Y/Y. Following the spin-off of Veralto in Q3 2023 and the acquisition of Abcam, a key LSTS industry supplier, in Q4, we see Danaher ( DHR ) as a more focused life sciences and diagnostics play and better positioned for future growth. We also think DHR has the potential to make more acquisitions, which could further boost revenues; with management interest and moderate net debt/EBITDA of 1.7x as of year-end 2023, we see it likely in the near term. We also see solid growth for the molecular diagnostic business, Cepheid, as the install base continues to expand and there is solid demand for GeneXpert tests.