Danaher's Defensive Portfolio Is Ideal Amid Macro Fears: RBC Analyst

Danaher Corporation’s DHR portfolio, with 75% recurring revenues and more than a 90% mix in life sciences and diagnostics, appears “incrementally more attractive” amid the currently harsh macro environment, according to RBC Capital Markets.

The Danaher Analyst: Deane Dray upgraded Danaher from Sector Perform to Outperform, while raising the price target from $299 to $310.

The Danaher Thesis: The company is a defensive safe-haven and its relative valuation “presents attractive entry point,” Dray said in the upgrade note.

“This upgrade is also consistent with our sector call to increase defensive exposures,” he added.

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“We believe the concerns with Danaher’s looming tough COVID comps are overdone, creating an opportunity to own this high-quality defensive name at a reasonable entry point,” the analyst wrote.

“Danaher’s +$20 billion M&A war chest should provide ample firepower to fill any earnings hole,” Dray further mentioned.

DHR Price Action: Shares of Danaher had risen by 0.44% to $264.97 at the time of publication Wednesday, according to Benzinga Pro.