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Fortive upgraded to Outperform at Raymond James after break-up announcement

Fortive upgraded to Outperform at Raymond James after break-up announcement

As previously reported, Raymond James analyst Brian Gesuale upgraded Fortive to Outperform from Market Perform with an $85 price target following the announcement that it is splitting the company in two by the end of 2025. The firm cites three catalysts for its upgrade: expectations for a share repurchase of greater than $1.5B over the next 15 months; the opportunity to simplify a complex business through the separation; and the creation of two distinct operating companies with attractive fundamentals and freedom to execute independent strategies. The firm believes both companies can trade at multiples greater than Fortive’s current EV/EBITDA multiple, the analyst added.

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