Roper Industries stock price target lowered to $644 by RBC on acquisition drag

Investing.com - RBC Capital has lowered its price target on Roper Industries (NASDAQ:ROP) to $644.00 from $703.00 while maintaining an Outperform rating on the stock. The company, currently trading at $480.61 and sporting a market capitalization of $51.86 billion, is trading near its 52-week low, according to InvestingPro data.

The adjustment follows Roper’s modest third-quarter 2025 operating miss, which RBC attributes to earnings drag from two recently completed bolt-on acquisitions that were not included in previous guidance.

The company also faced temporary headwinds from copper tariffs affecting its Neptune division and government shutdown impacts on its Deltek business, according to RBC Capital’s analysis.

Despite these challenges, which RBC characterized as transitory rather than execution-related, the firm highlighted Roper’s first-ever $3 billion share repurchase authorization, which could reduce outstanding shares by approximately 5-6%.

RBC noted that Roper’s management has emphasized that mergers and acquisitions remain the top priority for capital allocation, with the company maintaining a substantial $5 billion "M&A war chest" for potential deals.

In other recent news, Roper Technologies reported its third-quarter 2025 earnings, revealing a stronger-than-expected earnings per share (EPS) of $5.14, which surpassed the forecast of $5.11. However, the company’s revenue slightly missed expectations, coming in at $2.02 billion compared to the anticipated $2.03 billion. Despite the EPS beat, these mixed results have led to some concerns among investors. Oppenheimer has responded by lowering its price target for Roper Industries from $640 to $570, though it maintains an Outperform rating on the stock. The adjustment follows a downward revision to Roper’s organic growth outlook, influenced by external factors such as the government shutdown impacting its Deltek business and copper tariffs causing contract delays at Neptune. These developments indicate a challenging environment for Roper Technologies, as it navigates various economic headwinds.

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