Shares of Veralto Corporation (NYSE:VLTO) have received an average rating of “Moderate Buy” from ten analysts following the stock, according to a report by MarketBeat. Among these analysts, four have assigned a “hold” rating while six have indicated a “buy” recommendation. The average price target over the next twelve months is estimated at $113.43, reflecting positive sentiment among market experts.
Analysts have been active in assessing Veralto’s performance, with notable recommendations emerging recently. Stifel Nicolaus set a price target of $120.00 in a report dated July 30. Meanwhile, Barclays revised its target from $119.00 to $121.00 and categorized the stock as “overweight” in their latest analysis. Additionally, Raymond James Financial initiated coverage on August 26, designating the stock with a “market perform” rating.
On the other hand, Citigroup lowered its price target from $112.00 to $111.00, maintaining a “neutral” rating. Weiss Ratings upgraded its position on October 8, moving from a “hold (c+)” to a “buy (b-)” rating, indicating growing confidence in Veralto’s potential.
Institutional Investors Show Confidence
Recent activity among institutional investors also highlights a strong interest in Veralto. Compass Wealth Management LLC acquired a new stake valued at approximately $6.7 million in the third quarter. Vanguard Personalized Indexing Management LLC increased its shares by 9.6%, now owning 34,264 shares valued at around $3.7 million.
Furthermore, LBP AM SA raised its stake by 1.0%, totaling 132,439 shares worth approximately $14.1 million. PFG Investments LLC and UniSuper Management Pty Ltd also made adjustments, increasing their holdings by 2.7% and 11.5% respectively. Institutional investors now own 91.28% of Veralto’s stock, reflecting widespread confidence in the company’s future.
Veralto’s stock has experienced a slight decline recently, opening at $98.75 on Thursday. The company maintains a debt-to-equity ratio of 0.69 and demonstrates strong liquidity with a current ratio of 1.57 and a quick ratio of 2.06. Over the past year, the stock has fluctuated between a low of $83.86 and a high of $110.11.
Recent Earnings and Dividend Announcement
Veralto released its quarterly earnings results on October 28, reporting earnings per share (EPS) of $0.99, exceeding analysts’ expectations of $0.95 by $0.04. The company achieved a net margin of 16.75% and a return on equity of 38.69%, with revenue for the quarter reaching $1.40 billion, aligning with analyst forecasts.
For the current fiscal year, analysts anticipate Veralto will report an EPS of 3.66. The company has provided guidance for fiscal year 2025, projecting an EPS between $3.820 and $3.850 and for the fourth quarter, an EPS range of $0.950 to $0.980.
On the dividend front, Veralto announced a quarterly dividend of $0.11 per share, which was paid on October 31 to investors on record as of September 30. This dividend reflects an annualized yield of 0.4% and a payout ratio of 12.05%.
Veralto Corporation focuses on water analytics and related services globally, operating through two main segments: Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment provides critical instrumentation and technologies aimed at water measurement and treatment across various sectors.
As Veralto continues to garner positive evaluations from analysts and institutional investors alike, its prospects appear promising as it navigates the evolving market landscape.
