The average analyst price target for our first idea, a tech company, is $190.50. Our second recommendation is profit-taking on a previous pick
Buy: Roper Technologies (ROP)
From The Periscope Report
Roper Technologies (ROP) is one of our Top Ten mid-caps (Mcap: $17B). The company’s Medical and Scientific Imaging segment offers diagnostic and laboratory software solutions. The RF Technology segment offers radio frequency identification communication technology that are used primarily in toll and traffic systems. The Industrial Technology segment offers fluid handling pumps, materials analysis equipment and consumables, leak testing equipment, flow measurement and metering equipment, and water meter and automatic meter reading products and systems. The Energy Systems and Controls segment provides control systems, fluid properties testing equipment, and industrial valves.
Management gave guidance for 3Q earnings of $1.59 - $1.63 per share. The sell-side was at $1.62 per share. We said ROP would miss this estimate by two cents and the stock would fall on the news. We were wrong on both predictions. Sales increased 7% YoY to $947 million, which missed estimates by $7 million. Net earnings increased 3% to $1.65 per share, which beat estimates by three cents. But management lowered its guidance for the full year 2016, with net earnings expected to be $6.48 – $6.60, down from prior guidance of $6.57 - $6.71 per share. The stock gained 3%.
Tom Byrne, The Periscope Report, 4025 Sunset Ridge Drive, Canyon Ferry Crossing, Helena, MT 59602, 406-465-4663, November 4, 2016