Roper Technologies' (ROP) strategy shift toward targeting earlier-stage companies, rather than "established market leaders," could accelerate revenue growth, Oppenheimer said in a report emailed Monday.

"We have high confidence that management's decentralized philosophy and competency identifying, nurturing and operating market leaders will minimize the risks associated with earlier-stage companies while potentially enabling superior long-term value," Oppenheimer said.

While the brokerage does not expect margin expansion, it anticipates incremental revenue growth that should improve overall earnings before interest, taxes, depreciation and amortization, or EBITDA, and free cash flow generation, the report said. The company's stock is currently trading at a lower valuation than its Software as a Service, or SaaS peers, Oppenheimer said, adding it attributes that to factors such as an evolving shareholder base and potential "roll-up" discount.

"We see potential for [Roper Technologies] to narrow the valuation gap with vertical software peers over time given its collection of high quality vertical assets and execution against high single digits, or HSD organic growth initiatives," Oppenheimer said.

Oppenheimer assumed coverage of Roper Technologies with an outperform rating and a price target of $630.

Price: 525.27, Change: -0.13, Percent Change: -0.02