UPDATE: Canaccord Genuity Initiates Coverage on Roper Industries with Hold Rating, $128 PT on Diversified Revenue Base

In a report published Thursday, Canaccord Genuity analyst John Quealy initiated coverage on Roper Industries

with a Hold rating and $128.00 price target. In the report, Quealy noted, “A diversified ‘play' with leading market share in growth-oriented niche markets. Operating within four distinct verticals, Roper enjoys a diversified revenue base derived from key markets such as energy, water, radio frequency (RF) technology, SaaS-based networks, security, education and research/medical, among others. Margins (and management execution) have been flat-out impressive. Roper's lean operating structure and commitment to the manufacture of premium products in niche markets helps to drive strong gross/EBITDA margins of ~55%+/30%+, respectively. Recent investments in SaaS-based networks (healthcare) have helped drive even stronger returns.” Roper Industries closed on Wednesday at $126.11.