Deutsche Bank Likes Danaher Corporation

Deutsche Bank has a Buy rating on Danaher Corporation DHR. Deutsche Bank in a note to investors writes, "DHR remains our preferred play on the upcoming M&A cycle. Given this favorable market reaction, we could be entering a self-feeding M&A-cycle; certainly, based on company commentary, we would expect M&A activity to step-up again in 2011 and in this regard, we highlight that the MI/EE sector has the capacity to deploy the equivalent of 30% of current market cap over 2011/13e, assuming a leverage ceiling of 1.5x net debt/EBITDA. Clearly the optimal investment strategy would be to identify potential takeover targets, but this is extremely difficult. We prefer to go with names that have a proven M&A growth strategy – our favored play here is DHR but we also highlight SWK and RBC." Shares of DHR gained 36 cents on Friday to close at $45.87.