EVERETT, Wash. - Fortive Corporation (NYSE: NYSE:FTV), a diversified industrial technology conglomerate with a market capitalization of $27.8 billion, has officially named its soon-to-be independent Precision Technologies segment as Ralliant Corporation. According to InvestingPro data, Fortive maintains impressive gross profit margins of nearly 60% and currently trades above its Fair Value. The announcement came ahead of Fortive’s scheduled earnings call on February 7th, 2025, where it is expected to provide an update on the timing of the separation.
Ralliant is set to focus on precision technologies that are vital for next-generation innovation and protecting mission-critical applications. Its portfolio includes test and measurement, specialty sensors, and subsystems for the aerospace, defense, and space sectors. With Fortive generating $6.2 billion in revenue over the last twelve months, InvestingPro subscribers can access detailed analysis of how this separation might affect shareholder value, along with 8 additional key insights about the company’s prospects.
In conjunction with the new company’s unveiling, Fortive announced the expected appointment of Ganesh Moorthy as the independent Chair of Ralliant’s Board of Directors at the time of the separation. Moorthy, with his recent tenure as CEO, President, and Director of Microchip Technology (NASDAQ:MCHP), is anticipated to bring valuable market and operational insights to Ralliant.
Additionally, founding Fortive board members Alan G. Spoon and Kate D. Mitchell are slated to join Ralliant’s Board as independent directors. Mitchell will maintain her role as a director at Fortive as well. The selection of additional directors for Ralliant will be determined in the course of the separation process.
Tami Newcombe, President and CEO of Ralliant, expressed enthusiasm for the appointed board members, citing their industry expertise and leadership experience as critical to Ralliant’s growth and innovation strategy. Newcombe highlighted the significance of the appointments at this pivotal juncture for the new entity.
The formation of Ralliant and the appointment of its board members are part of Fortive’s ongoing strategy to streamline its operations and focus on core growth areas. Fortive, with a global workforce exceeding 18,000, is known for its commitment to continuous improvement and the Fortive Business System.
This news article is based on a press release statement and aims to present the facts without bias or promotion of the company or its future prospects.
In other recent news, Fortive Corporation has announced major changes in its board ahead of the annual meeting. Alan G. Spoon, a current board member, will not seek re-election, leading to a reduction in the number of directors from nine to eight. Sharmistha Dubey has been appointed as the new Chair, effective immediately.
In the meantime, Mizuho (NYSE:MFG) Securities has expressed a positive outlook on Fortive, highlighting ongoing strategic moves such as the tax-free spin-off of its Precision Technologies segments and a focus on share repurchases. The firm has increased the price target on the company’s shares to $97.00 from the previous $90.00.
RBC Capital Markets has maintained a Sector Perform rating for WW Grainger (NYSE:GWW), adjusting its financial outlook and reducing the price target from $1,125.00 to $1,113.00. The firm anticipates the company’s initial 2025 guidance to potentially reflect recent shortfalls in the High-Touch Solutions U.S. segment.
RBC Capital Markets also highlighted a selection of companies that have made significant strides or faced challenges in 2024. Fortive was noted for potentially confusing the market with its spinoff announcement that excluded Fluke and did not address portfolio cohesiveness issues.
Lastly, UBS has initiated coverage on shares of Fortive with a Neutral rating and a price target of $84.00. The firm pointed out that Fortive’s lower relative valuation compared to the broader Electrical Equipment/Multi-Industry complex might continue until the completion of its planned separation into two independent companies, expected late next year.
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