Morgan Stanley Upgrades Fortive with 20% Price Target Upside

Morgan Stanley has initiated coverage of Fortive with an 'Overweight' recommendation and a price target indicating a potential 20.36% upside, amidst a projected revenue growth of 4.79% and a solid EPS forecast.

Date: 08-09-2024

AI Rating: 7

Morgan Stanley's initiation of coverage for Fortive (NYSE:FTV) with an Overweight recommendation is a positive signal for investors. The forecast suggests a 20.36% upside based on an average price target of $85.06 per share, compared to the current price of $70.67.

The projected annual revenue growth for Fortive is noted at 4.79%, amounting to $6,450 million, which can positively influence stock prices as it indicates stability and demand in the company's operations.

Additionally, the average projected non-GAAP Earnings Per Share (EPS) is set at 3.73. This metric is critical as it reflects the company's profitability on a per-share basis and also contributes to investor sentiment regarding potential dividend payments and overall company health.

The fund sentiment appears to be mixed, with a reported decrease of 36 funds or institutions owning shares, down by 2.29% compared to the previous quarter. However, the average portfolio weight of funds dedicated to Fortive has increased by 9.57%, indicating a positive tilt from those who continue to hold positions.

Interestingly, the put/call ratio of 0.20 suggests a bullish outlook among options traders, which could further support efforts to drive stock prices upward.

Stocks: FTV