Stifel reiterates Buy rating on Veralto stock after strong Q2 results

Published 29/07/2025, 15:02
Stifel reiterates Buy rating on Veralto stock after strong Q2 results

Investing.com - Stifel maintained its Buy rating and $116.00 price target on Veralto Corp. (NYSE:VLTO), a $25.5 billion market cap company, following the company’s second-quarter earnings report that exceeded expectations. According to InvestingPro data, the stock is currently trading above its Fair Value, with a P/E ratio of 29.35x.

Veralto reported second-quarter revenue of $1.37 billion, surpassing both Stifel’s and Street estimates of $1.34 billion. The company’s adjusted earnings per share reached $0.93, above Stifel’s forecast of $0.87 and the Street consensus of $0.88. The company maintains impressive gross profit margins of nearly 60%, as revealed by InvestingPro analysis, which offers 10+ additional insights about Veralto’s financial health.

The water treatment company updated its 2025 revenue guidance, now projecting mid-single-digit core growth compared to its previous forecast of low to mid-single digits. This adjustment brings expected revenue to approximately $5.5 billion, higher than Stifel’s estimate of $5.39 billion and Street expectations of $5.42 billion. The company’s strong current ratio of 2.19 indicates robust liquidity to support this growth trajectory.

Veralto also raised its full-year 2025 adjusted EPS guidance to $3.72-$3.80 from the previous range of $3.60-$3.70. For the third quarter of 2025, the company anticipates mid-single-digit core sales growth and adjusted EPS between $0.91-$0.95.

The company demonstrated strong operating margin expansion in its Water Quality segment, which improved by 120 basis points year-over-year, while acquisitions and tariff costs pressured Product Quality & Innovation margins, which declined by 200 basis points compared to the same period last year.

In other recent news, Veralto Corporation announced its second-quarter earnings, which exceeded analyst expectations. The company reported adjusted earnings per share of $0.93, surpassing the anticipated $0.85. Revenue for the quarter reached $1.37 billion, slightly above the consensus estimate of $1.36 billion, marking a 6.4% increase year-over-year. Core sales, excluding the effects of acquisitions, divestitures, and currency changes, rose by 4.8% compared to the previous year. These financial results were attributed to strong commercial execution and consistent customer demand. There were no updates regarding mergers or acquisitions in this period. Analyst firms have not provided any recent upgrades or downgrades for Veralto Corporation. The company’s performance reflects its ability to maintain steady growth despite market fluctuations.

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