DHR: Can MASI Give this Dx Franchise MO? Tweak for Earlier Close & Review Recent #s

研报英文原文证据摘录

DHR: Can MASI Give this Dx Franchise MO? Tweak for Earlier Close & Review Recent #s

June 24, 2026

Investment Conclusion

Our perspective on MASI for DHR? (1) the $10B buy is about two years of DHR free cash flow. (2) MASI installed

base growth had been slowing in recent years to the LSD% range thus execution on the innovation/mix agenda

required to deliver HSD% revenue growth ahead. (3) We agree there is likely meaningful room for DHR to make

MASI operationally better and more profitable although the MASI post Kiani had already done significant work raising

margin. (4) Deal pencils LSD% EPS accretive from the jump and to 7% ROIC by Year 5. (5) While we had MASI

mentally placed into portfolios of med tech behemoths around the acute care bedside – we understand the broader

fit now a bit better. I.e., Radiometer offers a full panel of blood gas testing for critical care settings which has potential

to sync up with pulse ox revenue efforts in US and abroad. However, it seems an open question – can MASI really

help the “Danaher Diagnostics” brand/bundle in the acute care setting win bigger? Perhaps…but for now feel like a

‘show us’ kind of story.

We rate DHR shares Peer Perform and frame fair value of $165-$185 per share which represents 18-20 times

on our 2027 EPS estimate. Our model includes the ~$10B MASI acquisition accretion – we show the full 15c-20c of

guided Year 1 accretion in 2027. This applied P/E range straddles the sector multiple, currently 19x NTM EPS. Given

its scale, DHR in many ways approximates the sector and thus all else equal applying the sector multiple resonates.

A 19 P/E, the midpoint of the applied range, is roughly a 10% discount to the S&P 500 multiple. This level versus the

market is in the bottom quartile of DHR’s ~15-year history.

Figure 1.