Update shared on18 Sep 2025
Fair value Decreased 5.37%Analysts have lowered Fortive's price target to $57.25 due to skepticism over the company's ability to meet guidance amid slowing growth in its strongest segment, caution around macro headwinds post-Ralliant spinoff, and minimal near-term revenue growth.
Analyst Commentary
- Persistent skepticism regarding Fortive's ability to achieve its full-year guidance following a cautious update and lack of supportive industry data.
- Greater uncertainty in the investment thesis post-Ralliant spinoff, with the growth rate of Fortive’s strongest segment slowing and other segments underperforming.
- Positive view on Fortive's higher recurring revenues, premium margins, and strong brand portfolio, but concerns persist due to increased company complexity and recent downward revenue guidance.
- Immediate-term headwinds from tariff-related pricing pressures and customer caution amid macroeconomic and policy uncertainties.
- Some analysts welcome the completed Ralliant spin as a step toward improved focus, but near-term revenue growth is seen as minimal, with limited scope for valuation re-rating.
What's in the News
- Fortive completed the spin-off of its Precision Technologies segment, creating Ralliant Corp., with the separation finalized on June 28, 2025; Ralliant shares were distributed to Fortive shareholders. (Key Developments)
- As a result of the spin-off, S&P 500 constituent Fortive remains in the S&P 500, while Ralliant will replace Wolfspeed in the S&P SmallCap 600, effective July 1, 2025. (Periodicals)
- Olumide Soroye was appointed CEO of Fortive following the leadership transition linked to the spin-off, replacing retiring CEO James Lico, who will serve as a non-executive senior advisor through year-end. (Key Developments)
- Between March 29 and June 27, 2025, Fortive repurchased 1,897,322 shares (~0.56% of shares outstanding) for $134.99 million, completing a total of 27.4 million shares repurchased (~7.83%) for $1.94 billion under its 2022 buyback program. (Key Developments)
- Fortive's Board of Directors declared a regular quarterly cash dividend of $0.06 per share, payable September 26, 2025, to shareholders of record on September 12, 2025. (Key Developments)
Valuation Changes
Summary of Valuation Changes for Fortive
- The Consensus Analyst Price Target has fallen from $60.50 to $57.25.
- The Net Profit Margin for Fortive has fallen slightly from 16.46% to 16.00%.
- The Future P/E for Fortive has fallen slightly from 32.77x to 31.94x.
Disclaimer
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