William Blair analyst Ryan Merkel has maintained their bullish stance on FERG stock, giving a Buy rating on December 2.
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Ryan Merkel has given his Buy rating due to a combination of factors including Ferguson PLC’s strong performance in megaprojects and stable plumbing sector results. The company’s earnings per share are expected to surpass market expectations, driven by robust megaproject execution and slight price increases. Merkel believes that while there is some caution around HVAC and residential sectors, the overall outlook for 2026 remains positive, particularly due to Ferguson’s strategic positioning in megaprojects and contractor rollups.
Ferguson is seen as a leader in building product distribution, benefiting from its extensive national presence and diverse product offerings. This unique market position allows Ferguson to capture market share effectively. Industry insiders have reinforced this perspective, highlighting Ferguson’s dominance in servicing large-scale projects. Consequently, Merkel justifies a premium valuation for Ferguson, even as other industry peers experience declining multiples.
In another report released on December 2, Jefferies also maintained a Buy rating on the stock with a $289.00 price target.