Thursday, December 19, 2019

Fortive Getting Plenty Of Love For Its Transformative Potential

While short-cycle industrials have recovered in recent months, Fortive (FTV) is still on track for a rare year of underperformance relative to the “average” industrial stock. This comes despite the announced decision to break the company in two and reposition RemainCo to focus more on software, connected devices, healthcare, and workflow management, partly due to the company’s exposure to this short-cycle slowdown. Although I find a lot of things to like about Fortive, I just can’t get that excited about the shares now. While I don’t disagree with the direction/focus of Fortive’s (RemainCo) M&A efforts, some of the specific deals have been questionable in terms of valuation and growth potential. What’s more, while I do expect 2020 to be meaningfully better for important segments like test & measurement, the valuation seems to already reflect that.

Read more here:
Fortive Getting Plenty Of Love For Its Transformative Potential

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