Danaher (DHR) Stock Forecast & Price Target

Danaher has demonstrated strong growth potential, evidenced by performance obligations rising to $4.9 billion in 2Q25, up from $4.5 billion in the previous quarter, indicating robust demand across its segments. The company anticipates a 4.5% growth ramp in the Life Sciences sector during 4Q, supported by favorable comparisons in Genomics and new product launches, despite facing prior impacts from reimbursement headwinds in China. Additionally, the de-risking of the Cepheid Respiratory segment, with projected revenues of $300-350 million in 3Q25 and $450-500 million in 4Q25, further underscores Danaher's resilience and adaptability in the market.

Danaher's stock faces a negative outlook due to a noticeable decline in expected revenue recognition, with 46% of 2Q25 obligations forecast to be recognized within the next 12 months, down from 48% in the previous quarter. Furthermore, multiple risks including geopolitical disruptions, foreign exchange fluctuations, and the uncertain recovery of high-growth end-markets, particularly in China, could adversely affect financial performance. Lastly, while there is some optimism about potential upside in earnings per share from respiratory performance, the overall guidance for Biotechnology and Life Sciences revenue has come in below expectations, raising concerns about growth trajectories.