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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Fortive Corporation

· 02/05/2021 08:09

01:05 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price to $78 from $73, valuing the shares at 31.5x our 2021 EPS estimate of $2.48 (lifted $0.05), above peers' forward average of 25.2x and FTV's forward range due to our outlook for continued benefits from FTV's focus on software and industrial technology, which has high recurring revenue and margins. We start our 2022 EPS estimate at $2.78. FTV posts Q4 EPS of $0.70 vs. $1.03, beating our $0.63 estimate. In 2020, free cash flow (FCF) rose 3.8% to $1.2B and we forecast FCF growth of $900M in 2021 to be targeted for acquisitions within the technology space. FTV has lowered debt $3B since the start of Q4, and leverage is a strong 1.3x. In 2021, we forecast revenue growth of 8%-9.5%, followed by growth of 6%-7% in 2022. We expect EBITDA margin of 24.1% in 2021, expanding 190 bps to 26.0% in 2022.