If you're looking for a well-run conglomerate trading at a
significant discount to fair value, you're probably going to pass over Danaher (NYSE: DHR )
. That's typically the case, though, as this company's demonstrated
strength in generating margins, cash flow, and returns on capital makes
it a perennial favorite with institutional investors.
Even if the expected returns from the stock don't meet your hurdle
rate today, Danaher looks like a good name for a watch list. Management
has over $8 billion in dry powder for M&A activity and a clear
desire to do a large deal (or two). Combine that with a turned-around
diagnostics business and underappreciated growth opportunities in
product ID and water treatment, and this is a company with solid
long-term prospects.
Please continue here:
Danaher Corporation Rarely Cheap, But A Proven Winner
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