In a report released today, Keith Hughes from Truist Financial maintained a Buy rating on Ferguson PLC (FERG – Research Report), with a price target of $200.00.
Keith Hughes has given his Buy rating due to a combination of factors influencing Ferguson PLC’s current and future performance. Despite the challenges posed by ongoing commodity deflation, Ferguson has demonstrated resilience with solid volume growth, particularly in its non-residential business sectors. The company’s ability to maintain positive organic sales growth amidst macroeconomic pressures highlights its operational strength and market position.
Additionally, Hughes anticipates that the imposition of steel tariffs will help mitigate deflationary pressures in the near term, providing a more favorable environment for margin recovery. Although the price target has been adjusted downward to $200 due to economic uncertainties, the overall outlook remains positive as Ferguson continues to show potential for market share gains and improved volume growth. This combination of factors supports the Buy rating, as the company is well-positioned to navigate current challenges and capitalize on future opportunities.
Hughes covers the Industrials sector, focusing on stocks such as Beacon Roofing Supply, JELD-WEN, and Builders Firstsource. According to TipRanks, Hughes has an average return of 19.8% and a 60.45% success rate on recommended stocks.