Fortive’s Hold Rating: Uncertain Policy Impacts and Sluggish Growth Outlook

Morgan Stanley analyst Christopher Snyder downgraded the rating on Fortive to a Hold today, setting a price target of $50.00.

Christopher Snyder has given his Hold rating due to a combination of factors impacting Fortive’s stock. Following the separation of RAL, Fortive’s organic growth has slowed, and the company’s revenue is significantly tied to government and healthcare spending, which are currently clouded by policy uncertainties. This has led to a sharp derating in Fortive’s valuation, providing downside protection but also indicating potential negative revisions into 2026.
Despite Fortive’s strong fundamentals, including a high gross margin and a significant portion of recurring revenue, the lack of a clear catalyst to drive valuation higher is a concern. The company’s business drivers are difficult to assess and remain sluggish, with limited exposure to growth cycles and mega-trends. While there is potential for margin upside, the unclear recovery path and downside risks in organic growth forecasts contribute to the Hold rating, as the market may remain subdued on Fortive’s prospects into 2026.

According to TipRanks, Snyder is a 4-star analyst with an average return of 7.9% and a 55.33% success rate. Snyder covers the Industrials sector, focusing on stocks such as Eaton, Fastenal Company, and Parker Hannifin.