Analyst Suhasini Varanasi of Goldman Sachs maintained a Buy rating on Ferguson PLC, boosting the price target to $305.00.
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Suhasini Varanasi has given his Buy rating due to a combination of factors including Ferguson’s strong recent performance and resilient earnings outlook despite a challenging macro backdrop. Ferguson closed 2025 with quarterly results broadly in line with his expectations while beating market margin forecasts, and the stock has significantly outperformed the S&P 500 over the past year, highlighting its ability to grow EPS at a double-digit pace even as end markets soften.
Varanasi’s projections assume steady mid‑single‑digit revenue growth, margins near the upper end of company guidance, and continued strength in non‑residential demand, aided by exposure to large-scale projects and pricing volatility that tends to favor distributors. While higher-for-longer interest rates may delay a rebound in U.S. residential markets, he believes Ferguson’s balanced mix between residential and non‑residential exposure, scope for further margin expansion, and disciplined capital returns through M&A and buybacks support a low double‑digit EPS CAGR, leaving meaningful upside versus the current valuation and underpinning the Buy recommendation.
In another report released on March 30, Morgan Stanley also maintained a Buy rating on the stock with a p21,100.00 price target.