UPDATE: Morgan Stanley Raises Target to $59 on Danaher

Morgan Stanley maintains its Overweight rating on Danaher

and raises its price target to $59 (previously $57) on comments from the company management highlighting BEC's underlying performance and the Med-Tech magin trajectory. Morgan Stanley says Danaher management highlighted the following key takes: "(1) Conditions on the ground reflect lead indicators – strong US, weak EU and stable China; (2) BEC saw very modest organic growth in 2011 which paints flat 2012 core growth guide in a somewhat more conservative light; (3) LS&D margins in the 18-20% range are seen achievable with 17-18% achieved ex-BEC in 4Q11; (4) Industrial M&A multiples have compressed – Water/PID seen as especially fertile areas, while DHR ruled out large Med-Tech deals; (5) Latest positive commentary from Semi/Tech supply chain bodes well for accelerating trends at Tektronix." DHR closed at $52.96 a share on Wednesday.