Veralto initiated with a Neutral at Baird

Baird initiated coverage of Veralto (VLTO) with a Neutral rating and $82 price target. The spinoff from Danaher (DHR), which operates in the segments Water Quality and Product Quality & Innovation, offers “an attractive growth profile” in the mid-single digits, along with strong profitability and significant capital deployment optionality, the analyst tells investors. However, initial trading “indicates a balanced near-term risk/reward” and the firm sees volatile trading ahead as price discovery unfolds, adding that it would look for pullbacks or greater confidence in “forward estimate cadencing to turn positive.”