Raymond James has trimmed its price target on Roper Industries to $500.00, down from $575.00, while continuing to carry a Strong Buy recommendation on the stock. The change arrives amid a sharp decline in the share price from recent peaks - shares are trading at $362.58, about 40% below the 52-week high of $595.17.
The analyst's decision to lower the target follows what the firm described as "solid yet imperfect results," comments that coincided with an intra-quarter market reaction that pushed the stock down roughly 11% and spurred four responsive downgrades from other research teams. Recent market movement has been pronounced: the stock is down 8.75% over the last week and has fallen 33.7% over the past six months, according to the data cited in the analysis.
Valuation concerns are central to Raymond James' note. The firm points to a roughly 40% discount in Roper's valuation versus its historical relationship to multi-industrial peers and software competitors, and notes that the company's free cash flow yield sits near a 15-year low despite expectations for visible mid-single-digit organic revenue growth. The report also flags technical indicators that suggest the shares are oversold.
Supporting the maintained Strong Buy stance, Raymond James highlights several company-level attributes: an anticipated substantial acceleration of share repurchases that could exceed $1 billion in 2026, a history of uninterrupted dividend payments for 35 consecutive years, and 12 consecutive years of dividend hikes. The firm characterizes Roper's 2026 outlook as "largely de-risked" at current price levels.
Quantitatively, the analyst reiterates Roper's potential for mid-single-digit organic growth, a free cash flow to revenue conversion rate of approximately 32%, and a compressed trading multiple of about 14x EV/EBITDA versus a historical level near 23x. Data in the report lists the current EV/EBITDA at 14.94x and notes the stock is approaching its 52-week low.
Recent analyst activity beyond Raymond James has skewed cautious after Roper's fourth-quarter results. Several firms revised their views and targets:
- Truist Securities reduced its price target to $550, citing worries about organic growth and persistent issues at Deltek expected to continue into 2026.
- TD Cowen also lowered its price target to $550 but maintained a Buy rating, pointing to valuation concerns.
- Mizuho took a more conservative stance, cutting its target to $365 and keeping an Underperform rating while highlighting competitive risks tied to AI and the potential impact of a prolonged government shutdown on Deltek.
- Stifel downgraded the stock from Buy to Hold and set a $385 target after Roper reported organic revenue growth of 4%, which fell short of Wall Street expectations.
- Oppenheimer downgraded Roper from Outperform to Perform, citing a weak outlook and ongoing challenges across several business units including Deltek, Procare, DAT, and Neptune.
Collectively, these moves reflect a more cautious tone among equity analysts toward Roper's near-term performance prospects, even as at least one major house maintains a positive conviction on the name based on cash flow conversion, buyback potential, and dividend durability.