Skip to main content

Market Overview

Why This Fortive Analyst Is No Longer Bullish

Share:
Why This Fortive Analyst Is No Longer Bullish

Fortive Corp (NYSE: FTV) is poised for continued recovery in its core business and earnings accretion from deals over the next 12 to 18 months, according to Morgan Stanley, which downgraded the stock on a valuation basis Wednesday.

The Fortive Anlayst: Joshua Pokrzywinski downgraded Fortive from Overweight to Equal-Weight and maintained the price target at $75.

The Fortive Thesis: Following a substantial rerating of the company’s stock, the risk-reward seems “more balanced,” Pokrzywinski said in the downgrade note.

“The company's short-cycle markets are inflecting and posted solid upside in 4Q,” the analyst said, while expressing optimism around Fortive’s prospects over the next 12 to 18 months.

“That said, we see less upside from multiple expansion due to derating of other premium peers, less differentiated medium-term revenue growth versus other cyclicals, and some risk that M&A is viewed as too expensive given a focus on premium/software assets,” he said.  

“As cyclical and thematic forces become better reflected elsewhere in industrials, we see FTV's through-the-cycle quality as coming back into focus.” 

FTV Price Action: Shares of Fortive were down 3.9% at $67.09 at last check. 

(Photo: Fortive)

Latest Ratings for FTV

DateFirmActionFromTo
Feb 2021Morgan StanleyDowngradesOverweightEqual-Weight
Feb 2021CitigroupMaintainsBuy
Jan 2021Morgan StanleyMaintainsOverweight

View More Analyst Ratings for FTV
View the Latest Analyst Ratings

 

Related Articles (FTV)

View Comments and Join the Discussion!

Posted-In: Joshua Pokrzywinski Morgan StanleyAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
IRIXRoth CapitalMaintains9.0
AMRSRoth CapitalMaintains33.0
VORBarclaysInitiates Coverage On56.0
PNMCitigroupDowngrades
UBSFYCitigroupUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com