Key Stats for Danaher Stock
- Price Change for Danaher stock: 1%
- $DHR Share Price as of Dec. 2: $227
- 52-Week High: $258
- $DHR Stock Price Target: $256
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Danaher (DHR) stock caught Morgan Stanley’s attention this week as the investment bank upgraded its view on the life sciences and diagnostics giant. Analysts assigned an overweight rating with a $270 price target, representing about 12% upside from current levels.
The firm’s bullish stance comes as Danaher management laid out its initial framework for 2026, projecting core revenue growth of 3% to 6%.
While that might sound modest, CFO Rainer Blair emphasized the company’s ability to generate strong earnings leverage even at the lower end of that range, citing 10%+ EPS growth in the third quarter on just 3% revenue growth.
Morgan Stanley highlighted Danaher’s competitive positioning across its end markets and noted that the company’s size may have caused investors to overlook its “high-class innovation” across each business segment.
The analysts also believe the stock’s valuation relative to peers and historical levels suggests room for upside.
During a recent fireside chat, Blair provided detailed color on the 2026 outlook across Danaher’s three main segments.
For bioprocessing, management expects high single-digit growth driven by consumables, which have been growing at mid-teens rates.
The company assumes flat equipment sales for 2026 after a down year in 2025, though sequential order improvement suggests a potential turning point.
See analysts’ growth forecasts and price targets for Danaher stock (It’s free!) >>>
What the Market Is Telling Us About Danaher Stock
The positive view of Danaher stock reflects growing confidence that several of the company’s key headwinds are easing. Blair noted that the operating environment is “improving but not yet normal,” setting expectations for gradual recovery rather than a dramatic snapback.
China remains a mixed picture where:
- The bioprocessing business has returned to growth thanks to improving biotech funding conditions and more licensing deals for innovative compounds.
- Life Sciences remains solid, though below previous peak levels.
- Diagnostics continues to face pressure from volume-based procurement changes, though the $75 million to $100 million headwind expected in 2026 represents a smaller impact than this year.
Management’s confidence in bioprocessing equipment recovery stems from two key factors. First, there’s been a slowdown in equipment investment over the past two years, even as the underlying market grew significantly, as evidenced by strong growth in consumables.
Second, pharmaceutical reshoring efforts are gaining momentum, with customers making smaller initial investments that Blair expects will lead to larger projects in 2027 and beyond.
The Diagnostics business is positioning for stronger growth as China headwinds fade and new product cycles kick in.
Beckman Coulter just launched the DxI 9000, a high-resolution immunoanalyzer that enables new assays, such as early-stage Alzheimer’s testing.
Cepheid’s non-respiratory business is growing at low double-digit rates. Leica Biosystems is leading in AI-enabled digital pathology.
Blair emphasized that Danaher is transforming Diagnostics from a focus on lab efficiency to one that provides essential clinical content alongside efficiency, with plans to accelerate new assay launches in the future.
For Life Sciences, the company isn’t assuming significant end-market improvement in 2026. Academic and government funding, which represents less than 5% of Danaher’s overall but 20% of Life Sciences tools, should at least stabilize.
Pharma business continues to grow, and new product launches, such as the 8600 ZenoTOF mass spectrometer, are generating strong interest.
While Danaher stock has been somewhat overlooked given the company’s size and complexity, Morgan Stanley’s call highlights the improving setup heading into 2026.
The combination of easing China headwinds, bioprocessing recovery, and strong innovation across Diagnostics could drive multiple expansions as execution improves.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Danaher Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
