Goldman Sachs analyst Joe Ritchie has maintained their neutral stance on ROP stock, giving a Hold rating on January 25.
Joe Ritchie has given his Hold rating due to a combination of factors regarding Roper Technologies’ recent financial performance and future projections. In his analysis, Ritchie observed that Roper Technologies’ adjusted earnings per share (EPS) for the fourth quarter were on par with market expectations, and the segment EBITDA also aligned with forecasts, thanks to strong results in the Network Software segment which balanced out a slight underperformance in Application Software. Additionally, Roper’s Technology Enabled Products (TEP) segment exhibited robust organic sales growth, driven by notable demand for products from Neptune and Verathon.
However, Roper Technologies’ guidance for the fiscal year 2024 EPS was marginally below expectations, including an anticipated dilution from the Procare Solutions acquisition. Despite management’s confidence in Procare’s potential for mid-teens growth and margin expansion, Ritchie maintains a Neutral stance on the stock. This caution is justified by the belief that there are more attractive risk/reward opportunities available elsewhere in the market. His valuation also considers the company’s free cash flow yield projections for 2025, alongside Roper’s solid organic growth and the possibility of further upside from mergers and acquisitions, supported by significant available capital for such activities.
In another report released on January 25, Robert W. Baird also maintained a Hold rating on the stock with a $582.00 price target.
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Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROP in relation to earlier this year.
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Roper Technologies (ROP) Company Description:
Incorporated in 1981 and based in Florida, Roper Technologies, Inc. is a diversified technology company, which designs and develops software, and engineered products and solutions worldwide. It operates through the following segments: Application Software, Network Software & Systems, Measurement & Analytical Solutions, and Process Technologies.
Read More on ROP:
- Roper Technologies announces 2023 financial results
- ROP Earnings this Week: How Will it Perform?
- Warburg Pincus and TA Associates Enter into an Agreement to Sell Procare Solutions to Roper Technologies
- Warburg Pincus, TA Associates to sell Procare Solutions to Roper for $1.86B
- Roper Technologies to acquire Procare Solutions
