VNT: Future Earnings Power Will Be Driven By Expanding Share Repurchases

Analysts have made a modest downward revision to their price target on Vontier to approximately $46.50 from about $46.90, reflecting slightly lower fair value and future earnings multiple assumptions, while keeping revenue growth and profit margin expectations essentially unchanged.

What's in the News

• Raised full year 2025 earnings guidance, projecting total sales of $3,028 million to $3,038 million and core sales growth of 2.0 to 2.5% (company guidance)
• Confirmed fourth quarter 2025 guidance, expecting total sales between $760 million and $770 million with core sales growth ranging from negative 1% to positive 1% (company guidance)
• Increased third quarter 2025 sales outlook, indicating sales should come in slightly above the midpoint of prior guidance (company guidance)
• Completed a major share repurchase tranche, buying 1,700,000 shares for $70.81 million between June 28 and October 30, 2025, and finishing a total buyback of 27,200,000 shares for $840.78 million under the 2021 authorization (buyback update)
• Showcasing new technology at the 2025 NACS Show in Chicago, including unified payment solutions, advanced remote and wetstock management tools, and the Konect 400kW EV charger to support a multi energy retail future (product announcement)

Valuation Changes

• The fair value estimate has fallen slightly, moving from approximately $46.90 to about $46.50 per share.
• The discount rate has edged down marginally, with a negligible change in the fourth decimal place from about 9.55% to roughly 9.55%.
• The revenue growth assumption is essentially unchanged, holding near 4.43% with only a minute downward adjustment.
• The net profit margin assumption remains effectively flat, staying close to 16.19% with an immaterial decrease in precision.
• The future P/E multiple has declined modestly, reduced from around 14.72x to approximately 14.59x.