Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Fortive Corp (NYSE:FTV), a spinoff from Danaher Corporation (NYSE:DHR), reported better than expected earnings Oct. 26 and raised its guidance.
The Analyst
BMO Capital's Scott Graham initiated Fortive with an Outperform rating and $82 price target.
The Thesis
Fortive's operations are above most industrial companies, and it has a high quality portfolio of growth-oriented, market-leading businesses, Graham said. (See Graham's track record here.)
Fortive is expected to demonstrate sales growth at levels above goals and markets, Graham said. Its operating margin is significantly better than the margin of peer companies, and Fortive still has room for improvement, the analyst said. Value-add acquisitions are likely going forward, as Fortive has a goal of investing $5-7 billion, according to BMO.
Graham also has some concerns about Fortive. Gilbarco Veeder-Root and Matco Tools, both of which are owned by Fortive, are going to slow in the intermediate term, Graham said — and he expects higher acquisition prices in 2017. Fortive should trade with a premium of 25 to 30 percent to the capital goods industrial sector due to better metrics, the analyst said.
In the bullish scenario, Graham sees the stock at $90 and in the bearish scenario, at $60.
The Price Action
Fortive is trading around 1.2 percent lower Wednesday, but it's gained around 35 percent year-to-date.
Related Links:
Danaher's Not Cheap, But Barclays Says Price is Worth It For A 'Sleep At Night' Stock
Rales Brothers Hoping For Repeat Of Danaher's M&A-Driven Success Story
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!