Roper Earnings: Strong Start to 2024 but We Trim Our Valuation on Tempered Inorganic Growth Outlook

We lower our fair value estimate for Roper Technologies to $480 per share from $560, following a transfer of coverage and our tempered outlook for the value add of future acquisitions on the assumption of higher average deal multiples. Nonetheless, we continue to view Roper as a high-quality, diversified technology company with a portfolio of leading businesses in niche markets with durable competitive advantages, underpinning our wide moat rating. At current prices, Roper shares trade in line with our updated fair value estimate on a risk-adjusted basis.