Investing.com – Morgan Stanley lowered its price target on Danaher Corp. shares to $255 from $270 while keeping an Overweight rating on the stock. Shares currently trade at $187.44, near their 52-week low of $180.03.
Analyst Kallum Titchmarsh made the adjustment following the company’s first-quarter 2026 results and updated guidance. The firm made modest changes to its financial model for Danaher (NYSE:DHR).
The new price target reflects a valuation of approximately 24 times enterprise value to 2026 estimated EBITDA, down from the previous multiple of roughly 25 times. The change follows a de-rating across comparable companies in the sector. The company currently trades at an EV/EBITDA of 18.48 and a P/E ratio of 36.28, with InvestingPro analysis suggesting the stock is undervalued based on its Fair Value assessment.
“Following Q1’26 results and in light of the latest guidance, we make modest updates to our model,” Titchmarsh said. “On a de-rating across the comp group, we adjust our valuation multiples downward, leading to our revised price target of $255 on ~24x EV / ’26e EBITDA vs. prior $270 on ~25x EV / ’26 EBITDA.”
Morgan Stanley maintained its Overweight rating on the life sciences and diagnostics company despite the reduced price target. According to InvestingPro Tips, 11 analysts have revised their earnings downwards for the upcoming period. For deeper insights, investors can access DHR’s comprehensive Pro Research Report, one of 1,400+ available on the platform.
In other recent news, Danaher Corporation reported its first-quarter 2026 earnings per share (EPS) at $2.06, exceeding analyst expectations of $1.94 by 6.19%. However, the company faced a slight shortfall in revenue, reporting $5.95 billion against a forecast of $5.99 billion. Stifel maintained a Buy rating for Danaher and upheld its price target at $260, noting mixed results with strong life sciences demand but weaker performance in respiratory products. Guggenheim also kept a Buy rating but lowered the price target from $275 to $235, citing alignment with expectations and potential to meet the lower end of full-year guidance. Barclays reiterated an Overweight rating with a price target of $230, expressing continued confidence in Danaher’s life sciences and diagnostics sectors. TD Cowen adjusted its price target to $240 from $245, maintaining a Buy rating despite the mixed quarter influenced by flu-related factors. These developments reflect a varied but generally positive outlook from analysts on Danaher’s performance and future prospects.
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