Veralto initiated with a Hold at TD Cowen

TD Cowen initiated coverage of Veralto (VLTO) with a Hold rating and $95 price target. The spinoff from Danaher (DHR) houses their water assets and their laser marking/color management businesses and shares have moved materially higher year-to-date after “a rocky entry to the market,” the analyst tells investors. While the water outlook remains supported and PQI trends are expected to improve after last year’s decline, a valuation at the top end of the group range and M&A that is “still to be seen” leads the firm to begin coverage on the sideline and await a better entry. For investors looking for water exposure, the firm prefers Pentair (PNR), the analyst added.