DHR – Market expectations are for Uniform ROA expansion, but management may be concerned about China, innovation, and their positioning

• Danaher Corporation (DHR:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 29.6x Uniform P/E. At these levels, markets are pricing in bullish expectations for the firm, but management may be concerned about China, driving innovation, and their positioning
• Specifically, management may be concerned about market conditions and their ability to introduce products in China. Furthermore, they may be concerned about their positioning in the Diagnostic and Life Sciences business, and they may lack confidence in their ability to continue driving innovation.