Vontier Prepared For A Solid 2024 With Revenue And Margin Growth: Analyst
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Andrew Obin upgraded Vontier Corp (NYSE:VNT) to Buy from Neutral with a price target of $40, up from $37. Obin forecasts organic revenue growth and margin expansion in 2024 as U.S. fuel dispenser headwinds fade. He expects a 4% organic revenue CAGR and a 170bps cumulative adjusted operating margin expansion to drive a 10% adjusted EPS CAGR from FY23 to FY26. FY24 estimates now exclude the completed Coats divestiture, with a higher adjusted EPS forecast of $3.14 compared to the $3.09 consensus. FY25 adjusted EPS is projected at $3.51, a 12% year-over-year increase. Contract wins for the iNFX payments platform are expected to add visibility and organic FCF generation is anticipated to be strong, partly due to proceeds from the Coats divestiture. VNT shares rose 2.64% to $34.45.
January 11, 2024 | 7:37 pm
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Vontier Corp upgraded to Buy from Neutral by BofA Securities with a price target of $40, indicating expected revenue and margin growth, and a higher adjusted EPS forecast for FY24 and FY25.
The upgrade by BofA Securities to a Buy rating and the increase in price target to $40 suggest a positive outlook for Vontier Corp's financial performance. The expected organic revenue growth, margin expansion, and higher adjusted EPS for FY24 and FY25 are likely to be viewed favorably by investors, potentially leading to a short-term increase in the stock price. The recent share price increase on the day of the announcement further supports this positive sentiment.
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IMPORTANCE 90
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