Tuesday, September 19, 2017

Fortive Exceeding Expectations And Deploying Capital Into M&A

Fortive (FTV) hasn't wasted time showing investors that it fully intends to follow the model and map left by Danaher (DHR). In addition to driving continuous internal improvement, Fortive has started putting shareholder capital to work in M&A – deploying more than $1.5 billion so far this year. Although the deals have been a little pricey, particularly the most recent acquisition, the businesses seem to very much fit in with the vision management has outlined for the company.

These shares have been quite strong year to date and over the last year, so I can't say that the Street is asleep on this name anymore. The appreciation potential in the shares is no longer in that sweet spot I'd like for a new investment, but quality doesn't often come cheap, and I'd note that Danaher did well for investors for a long time despite elevated valuations.


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Fortive Exceeding Expectations And Deploying Capital Into M&A

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