Stifel Downgrades Roper Industries (ROP) to Hold, 'Two Consecutive Misses And Few Near-Term Catalysts'

Stifel analyst Brad Reback downgraded Roper Industries (NASDAQ: ROP) from Buy to Hold with a price target of $385.00 (from $550.00).

The analyst comments "Unfortunately we were wrong as Roper's 3Q issues persisted into 4Q, sending shares down ~10% today, as 4Q organic revenue of 4% fell short of the Street's ~5.5% expectation driven by another quarter of softer Deltek performance, continued tariff-related weakness in Neptune and lower Networking perpetual-license revenue. With the stock now trading at ~13.5X CY27E P/FCF much of the bad news is priced in, but management's CY26 does not appear fully de-risked from our point-of-view as it assumes a 2H acceleration that management believes is fully attainable on easier comps and larger acquisitions becoming organic. Further, with Roper trading below likely multiples for future scaled acquisitions, it becomes incremental harder for management to execute on its FCF compounding strategy. Given a lack of near-term catalysts, we would prefer to own an asset like CRM that trades at a lower multiple but with higher organic revenue growth prospects. TP to $385."

For an analyst ratings summary and ratings history on Roper Industries click here. For more ratings news on Roper Industries click here.

Shares of Roper Industries closed at $408.67 yesterday.

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