Bill Gates’ 10 Stock Positions with Huge Upside Potential

3. Danaher Corporation (NYSE:DHR)

Analyst Upside: 39.16%

No. of Hedge Fund Holders: 101

Danaher Corporation (NYSE:DHR) is a leading life sciences and diagnostics innovator. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services. Danaher operates through three major segments, including Biotechnology, Life Sciences, and Diagnostics.

Danaher Corporation (NYSE:DHR) continues to maintain a healthy FCF, as it generated around $5.3 billion of FCF in FY2024. The FCF led to a net income conversion ratio of almost 135%. Recently, Barclays analyst Luke Sergott upgraded the rating on DHR from Equal-Weight to Overweight, reducing the price target from $240 to $205. Despite the price reduction, the analyst has raised the rating and emphasized that volumes in the Life Sciences sector are mainly linked to commercialized drugs, adding to the company’s stable business foundation. Sergott believes that Danaher’s diagnostics stability and bioprocessing momentum will be sufficient to counterbalance any potential weakness in the Life Sciences sector.

Andvari Associates stated the following regarding Danaher Corporation (NYSE:DHR) in its Q1 2025 investor letter:

“For the handful of companies in Andvari portfolios that do make physical goods, they all share a mitigating factor: they all have above-average pricing power. The source of their pricing power stems from selling products that are critical to the end user and yet are a small proportion of the customer’s total costs. They also often benefit from high switching costs. Danaher Corporation(NYSE:DHR), Mettler-Toledo, Zoetis, and IDEXX fall into this camp, as well as TransDigm.”