Ferguson PLC: Strong Performance and Strategic Positioning Justify Buy Rating

William Blair analyst Ryan Merkel has reiterated their bullish stance on FERG stock, giving a Buy rating today.

Ryan Merkel has given his Buy rating due to a combination of factors that highlight Ferguson PLC’s strong performance and strategic positioning. The company recently reported earnings per share significantly above expectations and raised its guidance for fiscal 2025, which has positively impacted investor confidence, as reflected in the 15% increase in share price. This performance suggests that Ferguson is well-positioned to outperform its peers through various market cycles.
Ferguson’s ability to expand its gross margin and gain market share despite mixed end-market conditions further supports the Buy rating. The company’s strategic initiatives, particularly in HVAC and waterworks, have shown success, and management remains optimistic about future large capital projects. Additionally, the restructuring efforts and the creation of an omnichannel experience are expected to enhance customer retention and drive further market share gains. Overall, these factors contribute to a positive long-term outlook for Ferguson, reinforcing the Buy recommendation.

In another report released today, Truist Financial also reiterated a Buy rating on the stock with a $200.00 price target.