William Blair analyst Ryan Merkel has maintained their bullish stance on FERG stock, giving a Buy rating today.
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Ryan Merkel has given his Buy rating due to a combination of factors indicating improving fundamentals for Ferguson PLC. The latest American Supply Association survey showed February same-day sales up 11% year over year, accelerating from January and exceeding his expectations, which he interprets as a sign that sector demand, helped by better weather, is stronger than the market anticipated.
He also notes that ASA data quarter-to-date implies organic growth for Ferguson that is running ahead of consensus estimates, suggesting potential upside to first-quarter revenue even though his formal forecasts are unchanged. Merkel’s model assumes modest overall sales growth, with residential plumbing and HVAC stabilizing and nonresidential activity expanding at a healthy pace, supporting his positive stance on the stock.