Michael Huber 
We’re buying 25 shares of Danaher at roughly $243 each. Following Thursday’s trade, Jim Cramer’s Charitable Trust will own 525 shares of DHR, increasing its weighting to 3.67% from 3.5%. We’re picking up more shares of Danaher as we continue to view the roughly 10% decline in shares of the life sciences company since earnings as too excessive and a chance to add to our position for the second time this week at a cheaper price. When we bought more shares of Danaher Tuesday, we talked about how the setup in the low $240s was a lot better than before. Danaher reported a much better-than-expected third quarter, with a return to growth in bioprocessing revenues. This is the first time this business increased its sales since early 2023. Initially, the market celebrated this update. Bioprocessing — using cell components to develop therapeutics — is the most important business line to Danaher and shareholders like the Club. However, the stock gave up all those gains and dropped to the low $240s after management gave conservative commentary about the fourth quarter and 2025. This forced analysts to lower their estimates for next year. DHR YTD mountain Danaher YTD We do not believe management’s thoughts about 2025 are signs of something wrong with the business. We view the commentary as their usual practice of being conservative when giving guidance. With expectations more reasonable, Danaher is in a better position to beat next year, which should lead to a higher stock price. Finally, we are seeing more sell-side analysts wake up to our view. On Thursday morning, Wolfe Research upgraded its rating on Danaher to an outperform buy and set a $285 per share price target. Even though Wolfe said it has always believed Danaher was one of the top assets in the tools industry, it held a peer perform hold rating on the stock because the analysts thought consensus expectations and the stock’s valuation were too high. That has all changed in the past week. “Street estimates now reflect a more reasonable set of assumptions for a return to normalized growth, the company’s target markets are slowly-but-surely improving, and valuation (still a robust but deserved premium) appears more reasonable,” Wolfe research explained. We think this Wolfe Research upgrade could be one of several in the weeks ahead as analysts realize this is a high-quality business that has been put on sale. Our Club price target on Danaher is $305 per share, a tad higher than Wolfe’s, and it implies 26% upside to Wednesday’s close. (Jim Cramer’s Charitable Trust is long DHR. See here for a full list of the stocks.) As a subscriber to the 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 trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
