Roper Lets Investors Look Under the Hood; Engine Running as Always

Nothing from Roper Technologies' 2023 investor day alters our long-term view of the wide-moat-rated firm. Consequently, we maintain our $530 fair value estimate. There were few surprises in the March 21 presentation, which we consider a positive. We think Roper remains an improved version of a boring, decentralized, steady compounder that focuses on asset-light niche market leaders with strong free cash flow generation. These businesses benefit from large bases of deferred revenue, which in accounting parlance is booked as a liability.