Truist Securities lowers Roper Industries stock price target on government shutdown impact

Published 24/10/2025, 15:26
Truist Securities lowers Roper Industries stock price target on government shutdown impact

Investing.com - Truist Securities lowered its price target on Roper Industries (NASDAQ:ROP) to $650.00 from $685.00 on Friday, while maintaining a Buy rating on the stock. The stock, currently trading near its 52-week low at $479.45, shows potential upside according to InvestingPro analysis.

The adjustment follows Roper’s third-quarter results, which showed organic growth of 6% and free cash flow that Truist described as "strong." The company’s diluted earnings per share also exceeded Truist’s estimates. Financial data from InvestingPro reveals impressive revenue growth of 13.59% and a robust free cash flow yield of 5%, supporting the company’s strong financial health score of 2.71 (GOOD).

Roper management indicated that the government shutdown and tariff issues negatively impacted its Deltek and Neptune businesses, leading to a slight reduction in its fiscal year 2025 organic growth guidance from 6-7% to approximately 6%.

Despite these challenges, Truist characterized the issues as "transitory" and expressed confidence that Roper’s "solid to improving organic growth theme is still intact" once these matters are resolved.

The research firm also highlighted Roper’s ability to generate substantial free cash flow that could be used for "either accretive deals or return to shareholders."

In other recent news, Roper Technologies reported its third-quarter 2025 earnings, revealing a stronger-than-expected earnings per share (EPS) of $5.14, surpassing the forecast of $5.11. However, the company’s revenue slightly missed expectations, coming in at $2.02 billion compared to the anticipated $2.03 billion. Despite the EPS beat, the revenue shortfall has drawn attention from investors. In related developments, RBC Capital has lowered its price target for Roper Industries to $644 from $703, citing an earnings drag due to two recently completed acquisitions. Oppenheimer has also reduced its price target on Roper Industries to $570 from $640, following mixed third-quarter results and a downward revision to the company’s organic growth outlook. Challenges such as the government shutdown have impacted Roper’s Deltek business, while copper tariffs have caused contract delays at Neptune. Both RBC and Oppenheimer have maintained an Outperform rating on the stock. These recent developments highlight the mixed performance and challenges faced by Roper Industries.

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