In a report released today, Ryan Merkel from William Blair maintained a Buy rating on Ferguson PLC, with a price target of $293.00.
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Ryan Merkel has given his Buy rating due to a combination of factors, including Ferguson’s conservative but achievable 2026 outlook and attractive long-term growth profile. He views the assumption of lower residential volumes as sensible in light of weak housing and a lag to starts, while seeing room for upside in nonresidential demand, supported by strong activity in data centers and large-scale projects.
Merkel also highlights refreshed long-term financial targets, with one of the strongest sales growth frameworks among peers and incremental margin benefits from technology and AI-driven efficiencies. Based on a 16x multiple applied to his 2027 EBITDA estimate, he sees potential share appreciation of about 13%, and with multiyear secular growth drivers plus optionality from a future housing recovery, he maintains Ferguson as a top pick.
Merkel covers the Industrials sector, focusing on stocks such as QXO Inc, Fastenal Company, and Ferguson PLC. According to TipRanks, Merkel has an average return of 7.6% and a 58.29% success rate on recommended stocks.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $271.00 price target.