Danaher has a disappointing 2024. | Wilnesh News

Life sciences company Danaher is certainly not an easy stock to own this year. A wave of new startups going public on Wall Street will go a long way toward changing that. YTD Performance: Down 0.1% Forward P/E: 27.8, five-year average of 28.8 Our Rating: Equivalent to Buy 1 Our Price Target: $305 per share DHR YTD mountain Danaher Stock Performance YTD. ’24 looks back on this year as a year of recovery for the bioprocessing market, which has been under pressure due to increased inventory from large customers and limited capital for smaller biotech startups buying Danaher equipment and products. Another problem for Danaher is China, where economic growth has struggled throughout the year and announced stimulus measures have failed to translate into a real pickup in orders. That’s really why Danaher Investing has been a frustrating year. Management executed well and did its best to keep bioprocessing order expectations in line with investors, and then once that business started to turn around and the stock gained some momentum, investors refocused their attention on the negative economic dynamics in China. Throughout, we have included Danaher as one of 12 core holdings in our portfolio. Why? Jim Cramer’s Law of Investment No. 20: Patience is a virtue, giving up value is a sin. While Danaher may trade at a premium to the S&P 500, we believe the stock represents great value due to the long-term appeal of its life sciences end markets, including bioprocessing, and the quality of its management team. New ways to shed slow-growing businesses and refresh portfolios for multi-year growth. ’25 Looking Ahead In addition to the continued rebound in bioprocessing, Danaher will need a boost from China’s economy, which should lead to increased orders from customers in that country. In bioprocessing, large pharmaceutical customers are part of the business equation. With inventory levels largely at reasonable levels, new orders should start to accelerate. The other part of the equation is smaller startups, whose funding pipelines were hit hard after the collapse of Silicon Valley Bank in March 2023. The context for financing should also be improved. As Jim explained at the December monthly meeting, a better IPO market is indeed good news for Danaher. “The first thing a biotech company does when it goes public is place a big order with Danaher… That means to me that 2025 is going to be a lot better than 2024, even if China doesn’t get better,” Jim explain. Don’t get us wrong: China’s growth is clearly desirable and our preferred outcome. But we also note that this year’s sluggish performance will at least make China’s year-over-year comparison in 2025 easier. area moved away, understanding that this is completely beyond management’s control, but should eventually improve. (Jim Cramer’s Charitable Trust is long DHR. See here for the full list of stocks.) As a subscriber to Jim Cramer’s CNBC Investing Club, you’ll get to know Jim Cramer’s (Jim Cramer) Receive trade alerts before making a trade. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation shall exist or arise upon your receipt of any information relating to the Investment Club. No specific results or profits are guaranteed.

A worker uses a machine manufactured by Pall Corporation during a demonstration of the clarification phase of influenza vaccine production during a tour of the Sanofi Pasteur vaccine manufacturing plant in Swiftwater, Pennsylvania.

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life sciences company Danaher It’s certainly not an easy stock to own this year. A wave of new startups going public on Wall Street will go a long way toward changing that.

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