Investors should consider buying Danaher given its attractive valuation and upside potential, according to RBC Capital Markets. Analyst Deane Dray upgraded shares of Danaher to outperform from sector perform, saying in a Tuesday note that investors should get defensive with the high-quality stock amid rising supply chain and inflation issues. The analyst also hiked his price target on the stock to $310 from $299. The new price target represents nearly 18% upside from Tuesday's closing price for the medical diagnostics company. "We are upgrading Danaher from Sector Perform to Outperform as we believe that its high quality, defensive portfolio looks incrementally more attractive given the higher Wall of Worry/macro fears," Dray wrote. "This upgrade is also consistent with our sector call to increase defensive exposures." The firm added it likes the Danaher because of its organic revenue growth and free cash flow conversion. Danaher has a 75% recurring revenue mix, with 85% exposed to health care markets in life sciences and diagnostics. It also believes investors have a chance to own a high-quality defensive stock as its valuation is currently on the lower end relative to its historical performance and its peers. "We believe the concerns with Danaher's looming tough COVID comps are overdone, creating an opportunity to own this high-quality defensive name at a reasonable entry point," Dray wrote. —CNBC's Michael Bloom contributed to this report.