Evercore ISI has increased its 12-month price objective on Danaher to $254 from $250 while reiterating an Outperform recommendation on the stock. The firm’s move follows Danaher’s fourth-quarter disclosure, which Evercore described as pre-announced and largely in line with expectations given that fiscal year 2026 guidance had been provided earlier.
At the time of the note, Danaher was trading at $223.36 - below Evercore’s revised target yet trading above InvestingPro’s Fair Value estimate, which the research firm highlighted in its commentary. Evercore pointed to a number of levers that could drive further upside, particularly incremental improvement in BPS Equipment and strengthening results within Life Sciences as Analytics & Genomics performance improves.
The firm characterized Danaher’s guidance as containing a degree of cushion. Evercore noted the outlook does not embed assumptions for capital deployment and that share count creep in the guidance suggests no stock repurchases are assumed. That observation is notable given management’s recent share buyback activity cited in InvestingPro data and the company’s long-standing dividend track record, with dividend payments maintained for 33 consecutive years.
Evercore’s $254 target is supported in the firm’s analysis by an approximate 30-times calendar year 2026 price-to-earnings multiple and a 3% free cash flow yield. By comparison, current trading metrics cited in the research note show Danaher at a P/E of 46.3 and a free cash flow yield of 3%. The firm also referenced $5 billion in levered free cash flow generated over the last twelve months.
Danaher’s recent fourth-quarter results included an earnings-per-share print of $2.23, outpacing consensus estimates of $2.14. Revenue for the quarter likewise exceeded estimates, reaching $6.84 billion versus an expected $6.79 billion. For the last twelve months, the company reported total revenue of $24.27 billion and a gross profit margin of 59.59%.
Despite the earnings beat and revenue upside, the research note acknowledged that investor sentiment remains cautious, with concerns about future growth prospects cited as part of the market backdrop. Evercore also observed that major sell-side firms have not recorded any recent upgrades or downgrades for the company, leaving consensus recommendations unchanged in the near term.
Overall, Evercore’s adjustment to the price target reflects a modest upward revision tied to the firm’s valuation framework and identified operational improvement opportunities. The firm’s view incorporates the company’s recent cash generation and margin profile while treating guidance conservatively due to the absence of explicit capital deployment and buyback assumptions within management’s outlook.
Summary
Evercore ISI raised its Danaher price target to $254 from $250 and kept an Outperform rating after the company’s fourth-quarter pre-announced update. The firm pointed to potential upside in BPS Equipment and Life Sciences as Analytics & Genomics improves, and described the company’s guidance as conservative because it does not assume capital deployment or buybacks. Danaher reported an EPS beat in the quarter and reported $24.27 billion in revenue for the last twelve months with a 59.59% gross profit margin.