Goldman Sachs and KeyBanc are Bullish on Danaher (DHR)

Danaher Corporation (NYSE:DHR) is one of the 14 Best Large Cap Stocks to Invest In Now. On December 9, Goldman Sachs started covering Danaher Corporation (NYSE:DHR), giving the stock a Buy rating and setting the price target at $265.

The research firm pointed to the company’s strong $6 billion bioprocessing franchise. Despite a currently muted equipment market, this part of Danaher Corporation’s (NYSE:DHR) business is growing at a high single-digit rate. Goldman Sachs expects overhangs hurting equipment demand are starting to ease and the pharmaceutical industry now has a clearer view on funding.

Goldman Sachs also sees a shift towards Contract Development and Manufacturing Organization (CDMO) outsourcing to address onshoring. This could boost bioprocessing equipment orders in the near term. The research firm expects Danaher Corporation’s (NYSE:DHR) 2026 Biotechnology organic growth at 9.2%, which is higher than the consensus of 6.1%. This view is supported by the firm’s US CDMO survey, where 68% of respondents suggested that they plan to buy more equipment than last year.

Earlier, on December 8, KeyBanc Capital Markets highlighted top picks in the Life Sciences Tools & Services industry for 2026. The research firm cited improved biopharma spending and the easing of policy concerns.

KeyBanc Capital Markets noted that after three tough years marked by limited funding and destocking, the sector showed signs of recovery in Q3 2025 earnings and large-caps like Danaher Corporation (NYSE:DHR) led the stock price recovery.

The firm sees Danaher Corporation’s (NYSE:DHR) preliminary 2026 guidance of 3-6% core revenue growth as conservative. This view is supported by the significant increase in biotech funding in recent months.

Danaher Corporation (NYSE:DHR) is a leading global life sciences and diagnostics innovation company. The company is known for its professional, medical, research, and industrial products and services that help discover, develop, and deliver life-changing therapies.

While we acknowledge the potential of DHR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.