Crista Huff

Danaher Corp. (DHR, $69.77) announced Thursday afternoon that its subsidiary, Beckman Coulter, has received FDA clearance of its new Access AccuTnI+3 troponin I assay for use on the UniCel DxI series of immunoassay systems.Beckman, with expertise in cardiac disease management, was acquired by Danaher in 2011, after problems with its cardiac test,Troponin, led to a recall and financial problems.The FDA approval is a minor positive for Danaher stock, and closes the door on a difficult period in Beckman’s history.

Danaher is a science and technology company that manufactures diversified products, with locations in more than 50 countries. Its revenues are expected to grow 8 and 9% in 2013 and ’14 through internal growth via new and enhanced products, and through acquisitions.

Earnings are expected to grow 7-12% per year over the next three years, from expense control, and margin enhancement via the consolidation of recent acquisitions. The PE is 20.5, in a steady five-year range of 12-23.

The company has a solid balance sheet and strong cash flow, with intentions to repurchase 10 million shares, invest in R&D, and continue acquiring companies.

Danaher’s stock price is on a steady, long-term uptrend and appears immediately capable of continuing to climb.The valuation seems pricey, and I would instead concentrate new purchases on stocks with faster earnings growth.If I were enamored with Danaher and intent on owning shares, I’d wait, and hope for a pullback below $66.

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Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
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