Danaher (DHR) has been busy this year. In addition to the transformative acquisition of General Electric’s (GE) Biopharma business (which Danaher will rename “Cytiva”), Danaher has executed an efficient disposal of the Envista (NVST)
dental business, a move that immediately improved the company’s growth
rate and margins. These developments have hardly gone unnoticed, as the
already-popular Danaher stock has shot up more than 50%, trouncing the
roughly 26% year-to-date performance of its industrial peer group (which
really isn’t a peer group anymore) and keeping pace with Thermo Fisher (TMO).
Danaher
isn’t cheap now, but that’s nothing new, as there have been only a
relatively few windows of opportunity in recent years where Danaher
looked meaningfully undervalued. Although I’m disinclined to be all that
negative on the stock of a company that I think will generate
mid-single-digit core growth in a 2020 where many industrials will still
be struggling, the shares are already trading at over 20x my 2020
EBITDA estimate (adjusted for Cytiva).
Continue reading here:
Danaher Has Set The Table For A Brighter, Faster-Growing, And Higher-Margin Future
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