Technology
FTV is a high-quality business with an asset light model, high margins, high incremental margins and consistent FCF generation that is reinvested in M&A. Recent guidance for slow organic growth for Q2 and FY24 has impacted the stock, which Abacus believes is an opportunity to accumulate. FTV’s key strength of integrating and improving acquisitions along with organic growth in instrumentation and testing should deliver close to management’s targeted earnings growth of 15% per year over the next 4 years. Relative to other compounder business models, FTV looks to be well positioned and offers compelling potential returns.
Edition: 187
- 31 May, 2024