Danaher stock price target cut to $260 by JPMorgan

On Tuesday, JPMorgan analysts adjusted the price target for Danaher Corporation (NYSE:DHR), a global science and technology innovator, reducing it to $260.00 from the previous target of $280.00. Despite the adjustment, the firm maintained its Overweight rating on the company’s shares. According to InvestingPro data, analyst targets for DHR currently range from $205 to $310, with the company showing GOOD financial health scores. The revision follows Danaher’s first-quarter 2025 results, which surpassed expectations, particularly in the bioprocessing sector.

Danaher reported flat non-GAAP core revenue growth, which was more favorable than the Street’s anticipation of a 2.3% decline. With a substantial market capitalization of $138.56B and annual revenue of $23.88B, the company’s bioprocessing revenue saw a high single-digit increase in the first quarter, with consumables also growing at a low double-digit rate. Orders grew at a high single-digit quarter-over-quarter, which is noteworthy given the usual seasonal decrease expected in the first quarter. Both Life Sciences (LS) and Diagnostics (Dx) segments outperformed market expectations, aided by a significant $125 million respiratory beat. InvestingPro subscribers can access 12 additional key insights about Danaher’s financial performance and market position.

The company reiterated its 2025 top-line guidance, projecting a 3% core revenue growth, aligning with prior guidance and slightly above the Street’s forecast of 2.8%. Notably, Danaher maintains a strong dividend track record, having maintained payments for 33 consecutive years with a current yield of 0.69%. Biotechnologies revenue growth is anticipated at 7%, marginally exceeding the Street’s 6.8% prediction. The guidance assumes continued strong performance in bioprocessing, with expectations of high single-digit growth. Get comprehensive analysis and detailed forecasts for Danaher and 1,400+ other stocks through InvestingPro’s exclusive Research Reports.

Danaher has also provided adjusted EPS guidance of $7.60-7.75, closely bracketing the Street’s consensus of $7.65. The company’s adjusted operating margin (OPM) assumption remains steady at approximately 28.5%, consistent with previous estimates and narrowly below the Street’s 28.6% expectation.

Regarding tariffs, Danaher’s guidance includes an estimated gross impact of approximately $350 million, which the company believes can be largely mitigated through its extensive regional manufacturing footprint and surcharge pricing strategies. Additionally, Danaher has identified $150 million in cost savings, with $50 million realized in the first quarter of 2025. The remaining $100 million in cost savings has been excluded from the current guidance, serving as a buffer against the uncertain macroeconomic environment.

JPMorgan’s commentary highlighted Danaher’s strong performance in the first quarter, especially in the bioprocessing segment, and the company’s ability to manage tariff impacts and maintain cost savings as positive indicators. The firm believes Danaher remains a compelling investment opportunity within the tools space, given the current macroeconomic conditions.

In other recent news, Danaher Corporation reported its first-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $1.88, compared to the forecast of $1.62. The company’s revenue also exceeded projections, reaching $5.74 billion against an anticipated $5.56 billion. Despite a flat core revenue year-over-year, Danaher demonstrated strong profitability, with a gross profit margin of 61.2% and an adjusted operating profit margin of 29.6%. The company is targeting $150 million in cost savings through restructuring, and it has noted a high single-digit decline in the China market due to changes in diagnostic procurement.

Jefferies analyst Brandon Couillard recently adjusted the price target for Danaher shares to $230 from $260, maintaining a Buy rating. Couillard highlighted Danaher’s performance, particularly in bioprocessing, which exceeded expectations, and noted the company’s potential for mergers and acquisitions to enhance its market position. The analyst also mentioned that Danaher’s EPS guidance of $7.60 to $7.75 includes room for unforeseen challenges, with a more optimistic scenario potentially reaching $8 in 2025 and $9 in 2026. Couillard expressed confidence in Danaher’s long-range plan and its ability to navigate macroeconomic challenges.

Danaher’s strategic initiatives continue to focus on non-discretionary, regulated markets, which account for over 80% of its revenue. The company has projected core revenue growth of approximately 3% for the full year 2025, with adjusted EPS guidance in the range of $7.60 to $7.75. Danaher’s management remains optimistic about the company’s long-term growth prospects and its ability to deliver value to shareholders.

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