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Investing.com - Stifel has reiterated a Buy rating and $650.00 price target on Roper Industries (NASDAQ:ROP), a $59.3 billion market cap company with a "GOOD" financial health rating according to InvestingPro, following the company’s Q2 earnings report.
Roper delivered 13% revenue growth in the second quarter, maintaining its strong performance trend with a 13.59% revenue growth over the last twelve months. The organic growth of 7% year-over-year slightly exceeded analyst expectations. The company has raised its full-year 2025 revenue growth forecast to 13% from the previous 12% following its announced $800 million acquisition of Subsplash.
The company maintained its organic growth projection at 6-7% for fiscal year 2025 while raising the lower end of its earnings per share guidance by $0.15, despite an expected $0.05 dilution impact from the Subsplash acquisition.
Software (ETR:SOWGn) bookings showed particular strength, increasing by mid-teens year-over-year, with the Application Software segment growing 6% organically. The Network Software segment grew 5% organically due to DAT ARPU gains and ConstructConnect AI progress, while the TEP segment posted 9% organic growth.
Stifel’s maintained price target of $650 implies approximately 24x price-to-free cash flow based on 2027 estimates, with the firm citing Roper’s cash flow model, AI-enabled products, and more than $5 billion in M&A capacity as positive factors for future growth.
In other recent news, Roper Technologies reported its second-quarter 2025 financial results, surpassing Wall Street expectations. The company posted earnings per share of $4.87, slightly above the forecast of $4.83, and reported revenue of $1.94 billion, exceeding projections of $1.93 billion. Roper’s adjusted EBITDA margins were 39.9%, resulting in an adjusted EBITDA of $775 million, which beat expectations by $15 million. In a significant development, Roper Technologies has entered into an agreement to acquire Subsplash, an AI engagement platform, with the transaction expected to close soon. Financial details of the acquisition were not disclosed. Analyst opinions on Roper Technologies remain mixed, with Raymond (NSE:RYMD) James reiterating a Strong Buy rating and a price target of $670, citing solid Q2 results. Meanwhile, Barclays (LON:BARC) maintained an Underweight rating with a $562 price target, expressing concerns about the company’s mid-single-digit organic growth rate in software. These developments provide a snapshot of Roper Technologies’ recent performance and strategic moves.
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