top of page
Search
  • Writer's pictureAbacus Research

Fortive: potential14% IRR

Fortive is a high quality business with an asset light model, high margins, high incremental margins and consistent FCF generation that is reinvested in M&A.

  • Recent guidance for slow organic growth for Q2 and CY2024 has impacted the stock, which we believe is an opportunity to accumulate.

  • Fortive’s key strength of integrating and improving acquisitions along with organic growth in instrumentation and testing should deliver close to (we cant quite get to it) management’s targeted earnings growth of 15% per year over the next 4 years.


Our opinion is that relative to other compounder business models, FTV looks to be relatively well positioned and offers compelling potential returns.


Potential Upside:     14% IRR over four years

Sensible Downside:  2% IRR


Recent Posts

See All

Vertiv (VRT) - Datacentre play on AI theme

Vertiv is a leader in critical infrastructure for datacentres and a clear beneficiary of AI driven growth. AI tailwind for datacentres is only starting. To date, Vertiv has seen little to no impact fr

Palantir (PLTR)

The advent of LLM’s have changed Palantir's relationships with institutions – the commercial market is now open to what Palantir is selling. This is a significant change from one year ago. AIP bootcam

Equifax (EFX)

We see Equifax as a high-quality, capital light, compounder.  In our opinion EWS (56% of EBITDA) is a very attractive fast-growing business, with unique data asset and monopoly like returns and positi

留言


bottom of page