BNP Paribas Exane raises Fortive stock price target on investor day

BNP Paribas (OTC:BNPQY) Exane raised its price target on Fortive (NYSE: NYSE:FTV) to $75.00 from $67.00 while maintaining a Neutral rating following investor day presentations this week. The company, currently valued at $24.13 billion, trades at a P/E ratio of 30.73, suggesting a premium valuation. According to InvestingPro analysis, Fortive appears slightly overvalued at current levels.

The investor day events for both Fortive and Ralliant (SpinCo.) took place at the New York Stock Exchange, where leadership teams from both companies presented their strategies and outlooks. Each company will maintain a combination of Fortive heritage while incorporating outside experience following the planned spinoff. InvestingPro data shows Fortive maintains impressive gross profit margins of 59.98% and holds a "GOOD" overall financial health rating, suggesting strong operational efficiency.

Both companies issued new long-term targets during their presentations, which BNP Paribas Exane indicated were largely aligned with investor expectations and appear achievable. The research firm noted that post-spinoff, both businesses are expected to prioritize organic growth while maintaining discipline regarding mergers and acquisitions.

Fortive reiterated its guidance for the second quarter during the event but deferred providing a full-year update until it releases its second-quarter results. The company has not announced specific dates for the completion of the spinoff transaction.

BNP Paribas Exane characterized Fortive as a "show me" story, suggesting the company needs to demonstrate strong organic growth with consistent execution and disciplined capital allocation to achieve a valuation multiple more in line with its Industrial Tech peers. With analyst price targets ranging from $69 to $116 and the next earnings report scheduled for July 24, investors can access comprehensive valuation analysis and additional insights through InvestingPro’s detailed research reports.

In other recent news, Fortive Corporation has outlined its growth strategy following the planned spin-off of Ralliant Corporation, scheduled for June 28, 2025. The company reaffirmed its Q2 2025 guidance, projecting diluted net earnings per share between $0.44 and $0.49 and adjusted diluted net earnings per share between $0.85 and $0.90. Fortive has also expanded its share repurchase program, adding approximately 15.63 million shares, and initiated a special purpose repurchase program worth up to $550 million, funded by a pre-separation cash dividend from Ralliant.

Analysts have been active in updating their outlooks on Fortive. RBC Capital lowered its price target on Fortive to $75 from $79, maintaining a Sector Perform rating, while JPMorgan reiterated an Overweight rating with a price target of $87. The separation from Ralliant is seen as a strategic move, with Fortive focusing on high-quality brands and leveraging its Fortive Business System for innovation and growth. RBC Capital noted that both Fortive and Ralliant will carry forward the Danaher (NYSE:DHR) Business System DNA, aiming for a pattern of under-promising and over-delivering.

Fortive’s upcoming investor day events will provide further insights into the company’s future direction and the strategic vision for both Fortive and Ralliant as independent entities. The company’s leadership has expressed confidence in its ability to drive value creation, despite current market uncertainties. The developments reflect Fortive’s commitment to enhancing shareholder value and strengthening its financial prospects.

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