Veralto initiated with an Outperform at BMO Capital

BMO Capital analyst John McNulty initiated coverage of Veralto with an Outperform rating and $97 price target. The analyst sees Veralto as a “high-quality company” poised for solid earnings growth over the next three years, driven by a recovery in its two secular growth businesses: water quality and product quality and innovation. The firm says the company has high margin and return businesses, an “enviable” balance sheet, and significant free cash flow that will enable it to use acquisitions to supplement double-digit earnings growth.