In a report released today, Annelies Vermeulen from Morgan Stanley maintained a Buy rating on Ferguson PLC, with a price target of $250.00.
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Annelies Vermeulen’s rating is based on Ferguson PLC’s strong performance in a challenging market environment, driven by strategic initiatives and robust business fundamentals. The company has shown resilience with a solid sales growth of around 5% in the first half of the calendar year, despite expectations of softer growth in the latter half due to market dynamics and some softness in HVAC.
Ferguson’s focus on key growth areas such as HVAC, Waterworks, and large projects, alongside the rollout of Ferguson Home, demonstrates its commitment to leveraging synergies and expanding capabilities. The company’s strategic positioning in large non-residential projects, including data centers and healthcare facilities, further supports its growth potential. Additionally, Ferguson’s balanced end market exposure and attractive capital allocation enhance its appeal, leading to a Buy rating from Annelies Vermeulen.