Danaher (DHR) Valuation Check After Analyst Upgrade and 2026 Earnings Recovery Narrative

Morgan Stanley’s upgrade of Danaher (DHR) has put the stock back on many watchlists, as the firm leans into a 2026 recovery story built on core revenue growth and earnings leverage.

See our latest analysis for Danaher.

That optimism has helped the stock regain some momentum, with a 30 day share price return of 6.73 percent and a 90 day share price return of 14.79 percent, even though the 1 year total shareholder return is still slightly negative.

If Danaher’s recovery story has your attention, it could be a good moment to scan other healthcare names and see which look resilient using healthcare stocks.

With shares still below analysts’ targets but no longer obviously cheap after the recent rally, is Danaher quietly trading at a discount to its long term recovery potential, or is the market already pricing in that 2026 rebound?

Most Popular Narrative: 10.1% Undervalued

With Danaher last closing at $228.46 against a narrative fair value of $254.20, the story leans toward upside built on improving profitability and cash generation.

The sustained advancement of precision medicine and personalized therapies, including new AI-assisted diagnostic solutions and groundbreaking launches in genomics (like support for in vivo CRISPR therapies), positions Danaher's technology portfolio to capture higher-margin growth and drive long-term EBITDA expansion.

Read the complete narrative.

Want to see what kind of revenue runway, margin lift, and earnings power this vision assumes? The full narrative lays out a bold profitability and valuation roadmap that may surprise you.

Result: Fair Value of $254.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering uncertainty around China policy shifts and prolonged biotech funding weakness could delay Danaher’s recovery trajectory and challenge those long term margin assumptions.

Find out about the key risks to this Danaher narrative.

Another View: Multiples Tell a Tougher Story

On earnings, Danaher looks far less forgiving. The stock trades at about 46.1 times earnings versus 37 times for the wider life sciences group and a 32.7 times peer average, while its fair ratio sits nearer 32.2 times, suggesting valuation risk if sentiment normalizes.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Danaher Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your Danaher research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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