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Veralto shares price target raised on long term financial goals

EditorNatashya Angelica
Published 05/07/2024, 02:32 PM

On Tuesday, Argus Research maintained its Buy rating on Veralto Corp. (NYSE: VLTO) and increased the stock's price target to $110 from the previous $90. Veralto Corp., which was once a part of Danaher Corp (NYSE:DHR)., is recognized as a leading company in the water and product quality sectors.

According to Argus, Veralto is well-positioned to benefit from significant global trends such as water scarcity, water quality, climate change, consumer safety, packaging proliferation, and digitization.

The firm believes Veralto's business model is profitable and backed by a seasoned management team. The company's long-term financial goals suggest a low-double-digit growth in earnings per share, which is expected to be fueled by mid-single-digit sales growth and margin improvements. Argus points to the company's technical performance, noting a bullish pattern of higher highs and higher lows since November 2023.

Argus has highlighted Veralto's valuations as being attractive when compared to its industry peers. The upward revision in the stock price target to $110 is reflective of the firm's confidence in Veralto's potential to capitalize on the aforementioned megatrends and its solid financial performance. The new 12-month stock price target of $110 suggests Argus anticipates a continued upward trajectory for the stock.

InvestingPro Insights

As Veralto Corp. (NYSE: VLTO) garners a favorable outlook from Argus Research, real-time data from InvestingPro further illuminates the company's financial health and market position. Veralto's market capitalization stands at a robust $23.94 billion, underscoring its significant presence in the water and product quality sectors.

With a current P/E ratio of 29.22, the company's earnings valuation is reflective of the market's confidence in its profitability and growth prospects. This is further substantiated by Veralto's impressive gross profit margin of 58.31% over the last twelve months as of Q1 2024, showcasing its efficiency in managing production costs and maintaining profitability.

InvestingPro Tips highlight that Veralto operates with a moderate level of debt and that its liquid assets exceed short-term obligations, indicating a strong balance sheet. Moreover, the company's stock exhibits low price volatility, which may appeal to investors seeking stability.

For those interested in further insights, InvestingPro offers additional tips on Veralto, which can be accessed at InvestingPro's VLTO page. Readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 14 InvestingPro Tips that provide an in-depth analysis of Veralto's financials and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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