In a report released yesterday, Andrew Obin from Bank of America Securities maintained a Hold rating on Fortive (FTV – Research Report), with a price target of $79.00.
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Andrew Obin has given his Hold rating due to a combination of factors including Fortive’s medium-term targets aligning with previous expectations and the lack of significant surprises during their Investor Day. The company’s strategy involves reducing cyclicality and increasing its software revenue mix, which is expected to provide stability. However, the sum-of-the-parts valuation suggests limited upside potential, justifying a neutral stance. Fortive’s management aims for moderate core revenue growth and margin expansion, but these targets are relatively conservative compared to historical performance. Additionally, while Fortive’s focus on organic growth and strategic acquisitions is positive, the overall growth outlook remains modest. Consequently, the Hold rating reflects a balanced view of the company’s prospects, acknowledging both its strengths and the limitations in its growth trajectory.
Obin covers the Industrials sector, focusing on stocks such as Vertiv Holdings, Ametek, and Honeywell International. According to TipRanks, Obin has an average return of 12.3% and a 61.05% success rate on recommended stocks.
In another report released on June 8, RBC Capital also maintained a Hold rating on the stock with a $79.00 price target.