J.P. Morgan Likes Danaher's Acquisition (DHR)

J.P. Morgan Chase & Co. likes the Danaher Corporation DHR acquisition of Keithley Instruments, Inc. KEI, and has an Overweight rating and a $48 price target on shares. In the research report, J.P. Morgan writes, "The deal looks right down the middle strategically, providing complimentary bench instruments for TEK outside the core oscilloscope space, a key growth opportunity highlighted at the recent investor day. This being said, the optics around valuation are unattractive, given the purchase price and noise in reported numbers that show operating losses at the acquired." Shares of Danaher lost 2.1% yesterday or 88 cents to close at $40.57.