UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on Danaher Corporation

In a report published Wednesday, Credit Suisse reiterated its Neutral rating on Danaher Corporation

, and raised its price target from $55.00 to $59.00. Credit Suisse noted, “Although DHR's margins are best-inclass, current momentum suggests we should see another year of decent margin growth, given: (i) Beckman progress - Life Sciences (36% of sales) saw 33% incremental margins in Q4, and there should be decent runway left for Beckman to grow margins, as it has only been part of DHR for 18 months; (ii) Restructuring - like several other MI peers (EMR, GE, UTX), DHR increased its restructuring as we went through 2012, which should bode well for this year; savings of $80-90m should help add 40bps to margins following $123m of 2H12 restructuring costs, aside from the normalization of SG&A spend (minimal restructuring is anticipated in 2013); (iii) T&M margins have been under heavy 2H12 pressure due to volume deleveraging and mix (Tek Communications weakness); this should reverse, particularly by Q213, which should provide a tailwind to overall margins given T&M gross margins have been as high as ~60%, 800bps above the group average.” Danaher Corporation closed on Tuesday at $61.00.