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Vontier Prepared For A Solid 2024 With Revenue And Margin Growth: Analyst

Published 11/01/2024, 19:37
Updated 11/01/2024, 20:40
© Reuters.  Vontier Prepared For A Solid 2024 With Revenue And Margin Growth: Analyst
NVT
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Benzinga - by Lekha Gupta, Benzinga Editor.

BofA Securities analyst Andrew Obin upgraded Vontier Corp (NYSE: VNT) to Buy from Neutral at an increased price target of $40 (from $37).

The analyst sees more room to run for the company and forecasts all-in organic revenue growth and margin expansion in 2024 as U.S. fuel dispenser headwinds fade.

Obin expects 4% organic revenue CAGR and 170bps cumulative adjusted operating margin expansion to drive a 10% adj. EPS CAGR (FY23-FY26).

The analyst's FY24 estimates now exclude the completed Coats divestiture and despite this, their FY24E adj. EPS is higher at $3.14 (vs. $3.09 consensus) and FY25 adj. EPS is $0.16 higher at $3.51 (+12% Y/Y).

The analyst also expects contract wins for the iNFX payments platform to add to multi-year visibility and organic FCF generation (BofA FY24 $468 million) to be led by proceeds from the Coats divestiture.

Price Action: VNT shares are trading higher by 2.64% at $34.45 on the last check Thursday.

Latest Ratings for VNT

DateFirmActionFromTo
Feb 2022BarclaysMaintainsOverweight
Feb 2022Credit SuisseMaintainsOutperform
Feb 2022BairdDowngradesOutperformNeutral
View More Analyst Ratings for VNT

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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