Roper Technologies stock forecast as it divests CIVCO Radiotherapy

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Oct 22, 2021
  • Roper Technologies shares on Friday edged higher 2.4% after announcing its most recent quarterly results.
  • The company reported mixed fiscal Q3 results beating the EPS estimate while missing the revenue forecast.
  • The industrial company also agreed to sell the CIVCO Radiotherapy unit for $120 million.

On Friday, Roper Technologies Inc. (NYSE:ROP) shares gained 2.4% in market value after announcing its most recent quarterly results. The company reported mixed FQ3 results, beating the EPS estimate while coming short of the consensus revenue forecast.

ROP posted FQ3 non-GAAP earnings per share of $3.91, beating the average for analyst estimates of $3.83. On the other hand, its GAAP EPS of $2.71 missed the estimate of $2.61, while revenue for the quarter of $1.46 billion was $160 million below Street forecasts, despite growing by21.7% Y/Y.

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In addition, Roper said it reached an agreement to sell the CIVCO for $120 million. It is selling the Radiotherapy unit to its affiliate private equity form, Blue Wolf Capital Partners LLC. Earlier this month, ROP sold its TransCore unit to $ST Engineering for 2.68 billion.

Rop looks steeply valued

From an investment perspective, Rop shares trade at an expensive P/E ratio of about 48.90, making the stock less attractive to investors. 

Moreover, analysts expect the diversified industrial company’s earnings per share to plummet by 46.60% this year, before rising at an average annual rate of 11.90% over the next five years.

Therefore, Roper Technologies shares seem ideal to long-term investors, whereas short-term value hunters may opt for alternatives in the market.

Source – TradingView

Technically, Roper Technologies seems to be trading within an ascending channel in the intraday chart. As a result, the stock has skyrocketed to the overbought conditions of the 14-day RSI, creating a perfect opportunity for a pullback.

Therefore, investors could target short-term pullbacks at about $479.88, or lower at $471.53. On the other hand, if the rally continues, the stock could find resistance at $496.58, or higher at $504.94.

Time for profit-takers to swoop in?

In summary, although Roper Technologies still offers exciting long-term growth prospects, the stock price has recently spiked, surging to overbought conditions. 

Therefore, investors may be best waiting for a pullback or taking some profits while the price is still high.

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