Ahead of the Bell: Danaher Upgraded by Goldman

Danaher on Thursday said strong orders and a 20 percent rise in sales lifted first-quarter profit 10 percent.

Goldman's Deane M. Dray upgraded Danaher to "Conviction Buy" from "Neutral" and said the company has a defensive business model, with exposure to the water and medical industries. Also, Dray said 50 percent of Danaher's sales come from outside the U.S.

Dray noted that shares have declined 15 percent so far this year, but said the first quarter may be the low point and forecast sales growth, despite a slowing economy.

"We are mindful that despite softer 2 percent core revenue growth in the first quarter, driven by economy not execution, Danaher beat our estimate by a penny," Dray wrote in a client note.

Danaher replaces United Technologies Corp. on the firm's "Americas Conviction List," as Dray sees better near-term opportunities in Danaher.