CNBC’s Jim Cramer advised investors on Friday to add more Danaher to their shopping lists for next week after the announcement of third-quarter results.
“Now you get the chance to buy one of the best management companies in the world at a huge discount. I think you should take advantage of this decline [next] Monday morning, because Danhair is better than ignoring him.”
The life sciences and medical technology company beat earnings estimates in the third quarter but trimmed its 2022 bioprocess revenue growth forecast to explain lower contributions from the Covid market.
Despite the tempo, the company’s stock fell 5% Thursday in response to the quarter. This was a mistake, Kramer said, especially when considering Daneher to be an “arms dealer” in the pharmaceutical and biotech industries.
“There are very few players in the space and the industry that are as stagnant as they are,” he said.
Kramer said that while investors may be concerned about the decline in business from the Covid market, the company is refocusing its spending on the much larger space other than Covid. Non-Covid bioremediation sales grew more than 20%, and the company raised its full-year core sales growth forecast to the high single-digit range.
“The quarter was very, very strong despite what you may have heard,” Kramer said.
Disclaimer: The Kramer Charitable Fund owns stock in Danaher.
