TD Cowen maintains Buy on Roper Industries, $650 target

Published 25/03/2025, 20:30
TD Cowen maintains Buy on Roper Industries, $650 target

On Tuesday, Roper Industries (NASDAQ:ROP) shares maintained their Buy rating with a steady price target of $650.00, as reaffirmed by TD Cowen analysts. According to InvestingPro data, the stock is currently trading near its 52-week high of $595.17, with analysts’ targets ranging from $540 to $741. Based on InvestingPro’s Fair Value analysis, the stock appears to be fairly valued at current levels. The analysts expressed confidence in the company’s strategic acquisitions, which align with their focus on higher growth businesses that benefit from structural market tailwinds. These moves are expected to boost Roper’s organic revenue growth, which has already shown strength with a 13.94% increase in the last twelve months. With a market capitalization of $62 billion and a GOOD financial health score from InvestingPro, Roper demonstrates solid fundamentals. Discover 12+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.

TD Cowen’s analysis suggests that while the revenue multiple for Roper’s recent deal is higher than previous ones, the accelerated growth rate justifies the valuation. The analysts foresee a potential increase in earnings per share (EPS) for Roper, projecting approximately 80 cents by 2027. This projection assumes an effective debt repayment schedule over the coming years. Currently trading at a P/E ratio of 39.9x, the stock reflects investors’ confidence in the company’s growth trajectory.

The firm’s analysts also anticipate a 10% return on investment by 2030, indicating a positive long-term outlook for Roper Industries. This optimism is based on the company’s ability to successfully integrate acquisitions that contribute to faster growth and enhanced profitability.

Roper Industries’ strategic focus on acquiring businesses with strong growth potential and market advantages is central to TD Cowen’s positive rating. The company’s approach to leverage structural market tailwinds is seen as a key driver for organic revenue expansion.

In summary, TD Cowen’s reiteration of a Buy rating and a $650.00 price target for Roper Industries underscores the firm’s belief in the company’s growth trajectory and value creation through strategic deals. The analysts have highlighted the importance of diligent debt management and the potential for significant earnings growth over the next several years.

In other recent news, Roper Technologies has announced a definitive agreement to acquire CentralReach for approximately $1.65 billion, including a $200 million tax benefit. This acquisition is expected to contribute around $175 million in revenue and $75 million in EBITDA by mid-2026. Roper Technologies also declared a forthcoming dividend of $0.825 per share, payable in April 2025, reflecting their ongoing commitment to shareholder value. Additionally, TD Cowen has reiterated its Buy rating and $650 price target for Roper Industries, highlighting the company’s resilience and potential for growth amidst economic uncertainties. Meanwhile, PowerPlan unveiled its new SaaS platform, PowerPlan NXT, designed to assist tax and accounting professionals in optimizing financial assets. This platform, which incorporates AI-driven features, is set for release in 2026. Procare Solutions, part of Roper Technologies, launched Procare Professional Development, an accredited training program for early childhood education providers, aimed at enhancing professional growth and compliance. These developments underscore Roper Technologies’ strategic focus on growth through acquisitions and innovation in software solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.