Oppenheimer Upgrades Roper Industries (ROP) to Outperform

March 17, 2021 5:03 AM EDT
Get Alerts ROP Hot Sheet
Price: $425.65 +0.97%

Rating Summary:
    12 Buy, 5 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 18 | New: 47
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Oppenheimer analyst Christopher Glynn upgraded Roper Industries (NYSE: ROP) from Perform to Outperform with a price target of $460.00.

The analyst comments "We are upgrading shares to Outperform and establishing a $460 PT; represents 25x our '22E FCF/share ($18.32), a modest premium to current 23x '21E FCF/share, supported by planned ~$1.5B debt reduction during 2021 and resuming deal activity into 2022. Acquisitions should reasonably afford 5% pro forma '22E FCF accretion vs.
current estimates; +10%-plus '23E PF FCF growth (organic model with modest deal flow). Our PT reflects 4.6% target FCF yield on 2023 PF vs. current 4.5% median yield for our coverage on '22E; by comparison, affords view of relative headroom on our new ROP PT. ROP has executed just over 13% FCF CAGR across 5-/10-/15-year periods through 2020, with rising FCF and EBITDA margins and rising FCF/EBITDA conversion. ROP invested $6.0B into 2020 acquisitions."

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 $387.98 yesterday.



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