12:14 PM EDT, 06/09/2025 (MT Newswires) -- Fortive's ( FTV ) pending split is strategic, as the post-split Fortive ( FTV ) could gain stability with more predictable earnings, while the newly established Ralliant may benefit from greater independence and exposure to high-growth sectors, RBC Capital Markets said in a note Sunday.

The company will host a two-part Investor Day in New York on June 10 to showcase Ralliant in the morning and the new Fortive ( FTV ) in the afternoon.

Each entity will present with a new CEO for the first time, with the new Fortive ( FTV ) expected to focus on its recurring revenue strength and core sectors, while Ralliant will outline financial targets as a standalone sensors and test company, RBC saidf.

Both companies will set more conservative, achievable financial goals following the past underperformance of Fortive's ( FTV ) long-term targets, RBC analysts noted.

Fortive ( FTV ) has raised its share repurchase authorization to 20 million shares and launched a $550 million special buyback plan tied to proceeds from the Ralliant spin-off, which may lift 2025 EPS by about 1.5%, according to RBC.

The Investor Day could help sentiment, as Fortive ( FTV ) stock has lagged peers since its Q1 earnings, RBC said.

RBC maintained a sector perform rating for Fortive ( FTV ) and raised its price target to $79 from $78.

Price: 73.43, Change: +0.41, Percent Change: +0.55