Gold prices steady ahead of Fed decision; weekly weakness noted
Investing.com - RBC Capital has raised its price target on Roper Industries (NASDAQ:ROP) to $703.00 from $695.00 while maintaining an Outperform rating on the stock. The technology company, currently trading at $561.56 and valued at over $60 billion, is rated "GOOD" by InvestingPro’s comprehensive health score system.
The price target increase follows Roper’s second-quarter 2025 results, which RBC described as a "modest operating beat." The company has also raised the low end of its 2025 guidance by 10 cents, despite absorbing 5 cents of dilution from a new acquisition. With revenue growth of 13.59% over the last twelve months and a 34-year track record of consistent dividend payments, Roper demonstrates strong fundamental performance.
Roper announced an $800 million acquisition of Subsplash, a high-growth software company in the faith-based vertical market. According to RBC, this acquisition fits Roper’s growth-by-acquisition strategy and offers approximately 10 percentage points of margin opportunity.
RBC noted that acquisitions like Subsplash are helping to boost Roper’s software organic revenue growth from a legacy mid-single-digit percentage toward a "zippier mid-8% target."
The investment firm identified the biggest overhang on Roper shares as the ongoing risk-on investor sentiment, which RBC believes is resulting in a "buyer’s strike" for high-quality compounding stocks like Roper.
In other recent news, Roper Technologies reported significant financial results for the second quarter of 2025, achieving a revenue of $1.94 billion, which surpassed analyst expectations by $10 million. The company also recorded adjusted EBITDA margins of 39.9%, exceeding projections and resulting in an adjusted EBITDA of $775 million. Following these results, Roper has raised its full-year 2025 revenue growth forecast to 13%, up from the previous 12%, and announced an $800 million acquisition of AI engagement platform Subsplash, expected to close soon. Truist Securities responded by raising Roper’s stock price target to $685 while maintaining a Buy rating, citing 7% total organic growth, with particular strength in the Tech-Enabled Products segment. Stifel also reiterated a Buy rating with a $650 price target, noting the company’s solid 13% revenue growth in the quarter. Despite these positive developments, Barclays (LON:BARC) maintained an Underweight rating with a $562 price target, expressing concerns about Roper’s mid-single-digit organic growth rate in software. Meanwhile, Raymond (NSE:RYMD) James reiterated a Strong Buy rating with a $670 price target, highlighting the company’s robust financial performance. These updates reflect a mix of optimism and caution among analysts regarding Roper’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.