7 Best Medical Device Stocks To Buy Right Now

2. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 83 

Danaher Corporation (NYSE:DHR) is a global science and technology innovator specializing in life sciences and diagnostics. At its core, Danaher designs manufactures, and markets medical, industrial, and commercial products and services.

On September 6, TD Cowen reiterated its Buy rating on Danaher Corporation, setting a price target of $310 after an investor day focused on diagnostics, where the company emphasized a shift towards platform-level innovation over an Operating Company (OpCo) approach. Danaher reaffirmed its financial guidance for Q3 and the full year of 2024, despite anticipating a slight year-over-year decline in non-GAAP core revenue. In Q2, the company surpassed expectations with $5.7 billion in revenue, driven by strategic acquisitions and a focus on biotech and life sciences. Additionally, Cepheid’s 4-in-1 diagnostic tests for COVID-19, Flu A and B, and RSV are expected to enhance future revenue.

L1 Capital Investment Fund said the following about DHR in their investor letter for the second quarter of 2024:

“We made a number of relatively modest adjustments to the Portfolio in the June 2024 quarter, totalling less than 10% of the Fund’s investments. We divested our remaining holding in Danaher Corporation (NYSE:DHR). Danaher is one of the leading providers of equipment and services to the life sciences and diagnostics industries and is one the best run industrial businesses in the world. Many companies aim to emulate the ‘Danaher Business System’ of continuous improvement. We have no concerns with the quality of Danaher, the share price simply increased above our view of fair value. A core principle of our investment process is to maintain valuation discipline and we divested our investment, purely on valuation grounds. Danaher has moved to our Bench of potential future investments. Danaher’s share price has fallen around 10% since we sold our investment, and if it continues to drift down, we may have the opportunity to reinvest in a very high-quality business at a more attractive valuation.”

As of Q2 2024, 83 hedge funds tracked by Insider Monkey held stakes in the stock with Fisher Asset Management being the largest stakeholder with shares worth $1,108,420,324. 15 analysts have set a 12-month average price target of $282.53 for Danaher, with forecasts ranging from $250.00 to $310.00, indicating a potential 5.47% increase from the current price of $267.88.