Veralto paid ‘hefty’ multiple for TraceGains, says Deutsche Bank

Deutsche Bank keeps a Hold rating on Veralto after the company announced its “long-awaited first meaningful” acquisition as a public company with the purchase of TraceGains. The $350M price tag a “hefty” multiple, but TraceGains’ financials are “clearly attractive” as it is growing at 20%-plus with 80% gross margins and 95% recurring revenue, the analyst tells investors in a research note. However, Deutsche says that considering the small size of the deal and limited near-term earnings impact, it is not surprised Veralto shares are trading in line with peers today.