Jim Cramer believes in Danaher’s turnaround as life sciences comes back to life
Posted by Times Reporter | Dec 4, 2025 | Health | 0 |
Life science stocks are on the rise, and that’s good news for Danaher. Jim Cramer concludes that better times are ahead for the struggling portfolio name and believes the industry’s turnaround is best illustrated by Agilent Technologies’ recovery from the post-COVID doldrums. Shares are up about 50% from their April lows. The company reported a solid quarter late last month. What has changed? Padraig McDonnell, CEO of Agilent, referred, among other things, to the push to relocate life science production back to the USA. Life sciences companies develop tools and technologies used by pharmaceutical, biotech and medical device companies. But it doesn’t stop at Agilent. The bottom line is: “If Agilent can turn things around, I have to believe that the life science arms dealers can continue to make a comeback,” Jim Cramer said on “Mad Money” Monday night. “This includes everyone from Danaher to Thermo Fisher, Revvity and Waters.” He added: “They are all worth a closer look.” It has been a difficult few years for the industry since the pandemic boom, when demand for life science innovation soared. Danaher and rival companies skyrocketed, selling tons of bioprocessing equipment, lab instruments and testing tools. To avoid shortages, customers ordered too much, leading to a post-Covid economic downturn as demand waned. The aftermath has been harsh for Danaher investors, as the stock has struggled since its record coronavirus-era closing price of nearly $295 per share in September 2021. More recently, a strong quarter and an October guidance reassurance have reignited Wall Street’s enthusiasm for Danaher. Shares rose 1% each Tuesday to just over $226. They are up 30% from their April lows – most of those gains have come since the end of September. Morgan Stanley initiated coverage of Danaher this week with a “buy” rating. “Danaher has refined its business model in recent years to focus exposure to higher-growth life science end markets,” analysts write. They said they are more optimistic about Danaher’s lineup through 2026 as demand normalizes. Morgan Stanley set a price target of $270 for Danaher, an increase of about 20% from Tuesday’s close. “It’s been really frustrating over the last few years, even though we bought it during the post-Covid disaster. It turns out that was early because the stock was stagnant for a long time,” Jim said on Monday evening. But with The Street pointing out that 2026 will be a banner year for Danaher, with revenue expected to grow in the mid-single digits, there is reason for optimism. “If they can hit those targets, I bet the stock continues to rise,” Jim said, adding that if that happens the club might consider reducing the position again. On October 27, we sold 70 shares of Dahaner out of discipline, given the stock’s rally and the S&P Short Range Oscillator moving into overbought territory at that time. The club still owns 400 Danaher shares, with a portfolio weight of nearly 2.4%. Our price target is $240. (Jim Cramer’s Charitable Trust is long DHR. A full list of stocks can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
