Analyst John Lovallo of UBS maintained a Hold rating on Ferguson PLC, with a price target of $225.00.
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John Lovallo has given his Hold rating due to a combination of factors including the recent financial performance and future outlook of Ferguson PLC. Despite the company’s strong FY4Q25 results, which surpassed expectations with higher-than-anticipated revenue and operating margins, Lovallo maintains a cautious stance. The decision to hold is influenced by the balanced risk-reward scenario at current valuation levels, even as the company shows potential for consistent growth through its strategic initiatives.
Furthermore, Ferguson’s transition to a new fiscal year-end and its revised financial outlook for CY2025 introduce some uncertainties. While the company projects moderate revenue growth and stable operating margins, these forecasts are slightly conservative. Additionally, the adjustments in capital expenditures and interest expenses reflect a careful approach to financial management. These elements contribute to the Hold rating as they suggest a need for cautious optimism amid potential industry recovery.
Lovallo covers the Consumer Cyclical sector, focusing on stocks such as DR Horton, Toll Brothers, and KB Home. According to TipRanks, Lovallo has an average return of 10.9% and a 62.06% success rate on recommended stocks.