William Blair analyst Ryan Merkel has maintained their bullish stance on FERG stock, giving a Buy rating on December 7.
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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’s earnings per share were in line with expectations and surpassed the broader market’s predictions by 7%, indicating robust financial health. Ferguson’s involvement in megaprojects and its collaboration with dual-trade contractors are key drivers of its unique growth trajectory.
Additionally, Ferguson has demonstrated effective cost management, achieving better cost leverage and passing cost benefits onto its operations. Although sales were slightly below internal estimates, they exceeded market expectations, and the company managed to improve its gross margin and operating margin. The company’s ability to leverage selling, general, and administrative expenses more efficiently, coupled with favorable pricing trends, further supports the positive outlook. Adjustments to the 2025 guidance, with an increase in expected net sales and operating margins, also contribute to the Buy rating.
According to TipRanks, Merkel is a 4-star analyst with an average return of 5.4% and a 51.53% success rate. Merkel covers the Industrials sector, focusing on stocks such as Aaon, Trex Company, and Pool.
In another report released on December 7, TR | OpenAI – 4o also upgraded the stock to a Buy with a $277.00 price target.