Danaher is a global conglomerate that designs, manufactures and
markets diverse lines of industrial and consumer products. We are
reaffirming our Neutral recommendation with an $83 target price. In
the first quarter, the company reported encouraging revenue
improvement of 4.9% year over year. Moreover, Danaher expects to
benefit from the multiple acquisitions made during the year. The
company is investing more in R&D to drive product development
and expansion. Recently, Danaher also launched a number of new
products, which are expected to contribute to the company's
revenues, going forward. The company is also able to drive organic
growth and margin expansion, driven by its DBS system. However, due
to sluggish economic conditions in the U.S, tougher comparables,
and its narrowed outlook, we remain cautious on the stock's
Danaher Corporation (DHR) is a Massachusetts based real estate
investment trust. In 1978 it was reorganized as a Florida
corporation under the name Diversified Mortgage Investors, Inc.
which, in a second reorganization in 1980, became a subsidiary of a
newly created holding company named DMG, Inc. It adopted the name
Danaher in 1984 and was reincorporated as a Delaware corporation
following the 1986 annual meeting of its shareholders.
Danaher derives its sales from the design, manufacture and
marketing of professional, medical, industrial, commercial and
Danaher organizes its businesses into five operating
The Test & Measurement segment (17.9% for the full year 2013
revenues came from this segment). This segment is a leading global
provider of electronic measurement instruments, monitoring,
management and optimization tools for communications networks and
related services that are used in the design, development,
manufacture, installation, deployment and operation of electronics
equipment and communications networks and services.
The Environmental segment (17.3%for the full year 2013 revenues
came from this segment) provides products that help protect the
water supply and air quality and serves two primary markets: water
quality and retail/commercial petroleum.
The Life Sciences & Diagnostics segment (35.9% for the full
year 2013 revenues came from this segment) offers a broad range of
research and clinical tools that are used by scientists to study
cells and the components of cells to gain a better understanding of
complex biological matters. Pharmaceutical and biotechnology
companies, universities, medical schools and research institutions
use these tools and this information to study the causes of
disease, identify new therapies and test new drugs and vaccines.
The Diagnostics businesses offer a broad range of analytical
instruments, reagents, consumables, software and services that are
used to diagnose diseases, make treatment decisions and monitor
patients in hospitals and other critical care settings.
The Dental segment (11.0% for the full year 2013 revenues came
from this segment) is a leading worldwide provider of a broad range
of equipment and consumables for the dental market, focused on
developing, manufacturing and marketing innovative solutions for
dental professionals around the world. The global dental market
encompasses the diagnosis, treatment and prevention of diseases and
ailments of the teeth, gums and supporting bone.
Industrial Technologies segment (18.0% for the full year 2013
revenues came from this segment) manufactures products and
sub-systems that are typically incorporated by customers and
systems integrators into production and packaging lines as well as
incorporated by original equipment manufacturers (OEMs) into
various end-products. Many of the businesses also provide services
to support their products, including helping customers integrate
and install the products and ensure product uptime.
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