Danaher's (DHR) premium multiple has been adjusted to a multiple in line with its peers, after several company missteps and a leadership transition, RBC Capital Markets said in a note emailed Monday.

The company's biotechnology segment should improve progressively from its Q2 miss, RBC analysts said. Industry commentary on the bioprocessing opportunity has remained positive, and Danaher is the market leader in the sector, the analysts said.

Danaher's diagnostics segment has likely hit its low point and growth should start accelerating, the analysts said. Updated diagnostics reimbursement guidelines in China are within its range of expectations, while the Centers for Disease Control and Prevention has forecasted a moderate flu season, which is a positive for respiratory test demand, according to the note.

The company's peer group multiple has appreciated "meaningfully" over the past two months, and the analysts have lifted their price target on Danaher to reflect a parity multiple, they said.

RBC maintained its rating on the company's stock at outperform and increased the price target to $250 per share from $215.

Price: 217.36, Change: +3.30, Percent Change: +1.54