Intel stock extends gains after report of possible U.S. government stake
Investing.com - Truist Securities downgraded Fortive (NYSE:FTV) from Buy to Hold on Thursday, while lowering its price target to $55.00 from $60.00. The stock currently trades near its 52-week low of $49.26, with technical indicators suggesting oversold conditions according to InvestingPro data.
The downgrade comes after Fortive completed its spin-off of PT and installed new management with a more streamlined portfolio of businesses, according to Truist’s research note.
Despite acknowledging Fortive’s potential to deliver on financial targets with its high-quality growth businesses, Truist views the stock as a "show-me story" due to less ambitious organic growth targets compared to industry peers.
The firm cited concerns about Fortive’s industrial compounder business model, questioning the coherence of its remaining portfolio and its bolt-on focused M&A strategy. Truist also noted the company needs to prove credibility in meeting both short-term guidance and long-term targets.
Truist pointed out that Fortive continues to trade at or above the group average on forward P/E and EV/EBITDA metrics despite lagging peers in organic revenue growth, earnings growth, and return on invested capital.
In other recent news, Fortive Corporation announced its financial results for the second quarter of 2025. The company reported an adjusted earnings per share (EPS) of $0.58, which was slightly below the analysts’ forecast of $0.59. Revenue for the quarter was $1.02 billion, aligning with market expectations. Despite the minor shortfall in EPS, the revenue figures met analysts’ projections. The earnings report reflects investor concerns, as indicated by the pre-market stock movement. However, no major changes in analyst ratings or other significant company developments were reported at this time. These recent developments provide investors with updated insights into Fortive’s financial performance.
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