Ferguson PLC (FERG – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Arnaud Lehmann from Bank of America Securities reiterated a Buy rating on the stock and has a p16,600.00 price target.
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Arnaud Lehmann has given his Buy rating due to a combination of factors including Ferguson PLC’s strong financial performance in the third quarter. The company reported an adjusted trading profit of $715 million, which exceeded consensus expectations by approximately 17%. This was achieved through higher volumes and improved gross margins, despite concerns about high interest rates and demand in the US housing and commercial sectors.
Additionally, Ferguson’s ability to gain market share without compromising margins, along with its positive outlook in non-residential markets, supports the Buy rating. The company has also raised its full-year guidance, reflecting confidence in continued growth. Lehmann highlights Ferguson’s strong free cash flow, significant cash returns to shareholders, and attractive valuation compared to US peers as further justification for the Buy recommendation.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $200.00 price target.
FERG’s price has also changed moderately for the past six months – from p17090.000 to p15240.000, which is a -10.83% drop .
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