Roper Technologies: Depressed Valuation, Transitory Headwinds, and Buybacks Support Double-Digit EPS Growth and Buy Rating

In a report released yesterday, Joseph C Giordano from TD Cowen maintained a Buy rating on Roper Technologies, with a price target of $550.00.

Joseph C Giordano has given his Buy rating due to a combination of factors that highlight both valuation support and capital allocation upside. He notes that despite Roper delivering earnings and guidance that are in line with or supportive of Street expectations, the stock has significantly underperformed and now trades at a free cash flow yield close to 7% on his 2026 estimates. He believes the company’s guidance framework still underpins current consensus, with only modest tweaks to his own model primarily to align buyback assumptions with management’s commentary. In his view, the company’s balance sheet and cash generation can comfortably fund sizable share repurchases, and at current prices, deploying capital into buybacks is an attractive and rational use of funds.
At the same time, Giordano acknowledges that revenue growth concerns and several company-specific issues have weighed on sentiment, but he argues that many of these headwinds appear transitory and likely near their low point. He points out that Roper’s diversified portfolio, which historically has produced resilient results, is now being valued at a historically depressed multiple even as key pressures such as the freight downturn, government-related disruptions, and leadership changes move closer to resolution. His modeling indicates that organic growth trends should trough in the near term and begin to improve thereafter, which, combined with potential acceleration in earnings from buybacks, supports a path to double-digit EPS growth. Based on this setup, he assigns a $550 price target, which implies a forward multiple consistent with where the shares have often traded, reinforcing his Buy recommendation.

According to TipRanks, C Giordano is a 5-star analyst with an average return of 12.2% and a 63.10% success rate. C Giordano covers the Industrials sector, focusing on stocks such as IDEX, Ametek, and Mueller Water Products.

In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $450.00 price target.