Sam Reid, an analyst from Wells Fargo, maintained the Buy rating on Ferguson PLC. The associated price target was raised to $275.00.
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Sam Reid has given his Buy rating due to a combination of factors that highlight Ferguson PLC’s strong performance and promising outlook. The company delivered impressive results in its fourth fiscal quarter, surpassing expectations on both revenue and earnings. This performance underscores Ferguson’s robust business model and its ability to continue gaining market share, particularly in the Waterworks and HVAC sectors.
Moreover, Ferguson’s guidance for the upcoming calendar year suggests continued growth, with mid-single-digit percentage increases in both revenue and earnings before interest and taxes. Despite some concerns about the comparability of future results due to a change in fiscal year-end, the company’s pricing power and market position as a tariff beneficiary are seen as positive indicators. Additionally, Ferguson’s strong gross margin performance and effective cost management further support the Buy rating, as these factors contribute to the company’s long-term financial health and competitiveness.