UPDATE: Citigroup Upgrades Roper Industries to Buy on Compelling Growth Visibility
Citigroup raised its rating on Roper Industries (NYSE: ROP) from Neutral to Buy and increased its price target from $112 to $130.
Citigroup said, "Why now? — (1) Roper's migration to an SaaS business model has tipped its mix to +35% recurring revenues with its asset light and strong FCF businesses. (2) We have greater confidence in Roper's ability to sustain its highly differentiated M&A model, including its standby external legal and financial due diligence resources. (3) Based on our 10-year quantitative and qualitative screening model, Roper now screens among the highest quality companies in the sector. The implication is that, according to our investment framework, we are approaching the point in the cycle where we would have a bias for recommending these highest quality “Primes”.
Roper Industries closed at $107.32 on Thursday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.