Veralto price target raised to $99 from $91 at RBC Capital

RBC Capital analyst Deane Dray raised the firm’s price target on Veralto to $99 from $91 and keeps a Sector Perform rating on the shares. The company had been spun out of Danaher on October 2, 2023 with investor expectations for earnings consistency, steady cash generation, and capital allocation acumen, and Veralto should benefit from its heritage as a “baby Danaher”, the analyst tells investors in a research note. RBC adds however that since Veralto is not a fixer-upper and its core revenues are likely to be modest, the company’s growth algorithm needs to be boosted by M&A.