Barclays Maintains an 'Overweight' on Danaher (DHR); 3Q11: Setting up for a Better than Peer 2012
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Price: $236.36 -1.27%
Rating Summary:
24 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
24 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Barclays maintains an 'Overweight' on Danaher (NYSE: DHR) price target of $53.00.
Barclays analyst says, "DHR's core markets were stronger than we would have expected given pre-quarter chatter on inventory destock and health care weakness. Up 3% stock (S&P up 0.5%) on the day shows how expectations have ratcheted down over the last month or so. Fluke continues to do well and is more macro geared than most DHR's businesses; we believe Tektronix has now proven itself to be a smart acquisition. Dental we thought could be at risk but was solid and sequentially stronger. Overall, not much to pick on in the quarter."
"Beckman integration seems to be on track. After the first 90 days of Beckman in the portfolio, DHR has made good progress with installing DBS-trained people in key positions and is 75% of the way through headcount reductions. Margins are up�100bps sequentially on flat revenues and company plans to spend an additional $25M on restructuring in 4Q (down from $50M in 3Q). Total ongoing cost-out
opportunity at Beckman is north of $250M, or ~600bps+ of potential margin
improvements. Bottom line: we maintain 2012E of $3.20 but with higher conviction
level."
For more ratings news on Danaher click here and for the rating history of Danaher click here.
Shares of Danaher closed at $45.29 yesterday.
Barclays analyst says, "DHR's core markets were stronger than we would have expected given pre-quarter chatter on inventory destock and health care weakness. Up 3% stock (S&P up 0.5%) on the day shows how expectations have ratcheted down over the last month or so. Fluke continues to do well and is more macro geared than most DHR's businesses; we believe Tektronix has now proven itself to be a smart acquisition. Dental we thought could be at risk but was solid and sequentially stronger. Overall, not much to pick on in the quarter."
"Beckman integration seems to be on track. After the first 90 days of Beckman in the portfolio, DHR has made good progress with installing DBS-trained people in key positions and is 75% of the way through headcount reductions. Margins are up�100bps sequentially on flat revenues and company plans to spend an additional $25M on restructuring in 4Q (down from $50M in 3Q). Total ongoing cost-out
opportunity at Beckman is north of $250M, or ~600bps+ of potential margin
improvements. Bottom line: we maintain 2012E of $3.20 but with higher conviction
level."
For more ratings news on Danaher click here and for the rating history of Danaher click here.
Shares of Danaher closed at $45.29 yesterday.
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