Steet-view: Analysts cut Fortive PT on lowering annual forecast

Fortive

26/10/2023 14:02

** Shares of industrial tech company Fortive  FTV.N  fall
2.48% to $63 in pre-market trading as brokerages lower their
price target after co cuts FY2023 profit forecast on
inflationary pressures and ongoing supply chain issues.
    ** Co's Q3 revenue of $1.49 bln misses Wall Street estimates
of $1.52 bln, as per LSEG data 
    ** Co reported quarterly results two days after $1.45 bln
acquisition deal for German manufacturer EA Elektro-Automatik
Holdings GmbH.
    ** Median price target of 19 brokerages is $78 - LSEG data
    
CHINA MACRO HEADWINDS ON PRECISION TECH SEGMENT, HARDWARE ORDER
BACKLOG, HEALTHCARE SEGMENT MARGIN CUT
    ** Mizuho (cuts PT to $66 from $70, reiterates "neutral")
cites co's lower EPS expectations and uneven performance
    ** BofA Securities (PT $70, downgrades to "neutral" from
"buy") sees risks to 2024 forecast as co will have less backlog
coverage, moderating price increases and lingering destocking
drag
    ** Wells Fargo (cuts PT to $70 from $75, reiterates "equal
weight") says short-cycle demand trends remain a primary area of
uncertainty, backlog supports near-term, but focusing on proof
of orders accelerating
    ** Evercore ISI (cuts PT to $80 from $85, reiterates
"outperform") says despite macro worries, FTV remains well
positioned to magnify their core growth with M&A going forward
   

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))