Fortive downgraded to Neutral at BofA as ‘demand trends flash yellow’

As previously reported, BofA analyst Andrew Obin downgraded Fortive to Neutral from Buy with a price target of $70, down from $87, after the company reported Q3 core revenue growth of 2.5% that was below the firm’s estimate and prior guidance of 3.5%-4.5% year-over-year growth. Q3 volumes declines pose risks to 2024 guidance as Fortive will have less backlog coverage, moderating price increases and a lingering destocking drag, the analyst tells investors in a post-earnings note partially titled “Demand trends flash yellow.”