Struggling life-sciences firm Danaher (DHR) has been one of the best-performing Club stocks in recent weeks, boosted by signs of a recovery at its bioprocessing business. And with the company set to close a key acquisition this week, Danaher’s stock is set up for a stronger 2024. Danaher’s recent stock-price recovery was helped last week after CEO Rainer Blair said the company was “very confident” that 2023 would mark a bottom in its bioprocessing division, which has contracted in recent quarters due to an inventory glut. Some of Danaher’s pharmaceutical customers — many of whom had been working through an excess of products used in drug development — were “suddenly” needing to place orders, Blair said. Meanwhile, Danaher should become even more attractive to investors on Wednesday, when its all-cash $5.7 billion acquisition of British antibody maker Abcam (ABCM) is expected to close. Announced in late August , the Abcam takeover aligns with Danaher’s proven approach to making investors money: Buying faster-growing, higher-margin companies and further improving their performance. “Danaher has been adamant that 2023 will be the bottom of its bioprocessing business, and we are encouraged by the recent green shoots management has seen from customers,” Jeff Marks, the Investing Club’s director of portfolio analysis, said Tuesday. “Twenty-twenty-four should be a much better year for Danaher, and the Abcam deal should be additive to growth,” he argued. Shares of Danaher entered Tuesday’s session up nearly 16% since the start of November, outpacing the S & P 500 ‘s 9% advance during the same stretch. Despite its recent gains, Danaher remains one of the worst-performing Club stocks in 2023, down more than 5% through Monday’s close in a strong year for the broader market. On Tuesday, Danaher stock fell about 1.75%, to $218.25 per share. DHR .SPX YTD mountain Danaher’s year-to-date stock performance compared with the S & P 500. Danaher’s disappointing performance this…
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