Annelies Vermeulen, an analyst from Morgan Stanley, maintained the Buy rating on Ferguson PLC (FERG – Research Report). The associated price target remains the same with $204.00.
Annelies Vermeulen’s rating is based on several strategic initiatives and growth prospects that Ferguson PLC is currently undertaking. The company is actively expanding its HVAC counter locations across the United States to better serve specialized contractors, which is expected to enhance its market position and drive future growth. Additionally, Ferguson is investing in people, products, and expansion, with significant progress in converting counter locations, positioning the company ahead of its schedule.
Furthermore, Ferguson is taking steps to improve operational efficiency by simplifying management structures and reducing complexity, which should better position the company for future growth. Despite some cost inflation, the company has shown good underlying productivity improvements. The growth in the HVAC and Waterworks segments, supported by strategic acquisitions and geographic expansion, also contributes to the positive outlook. Although there are challenges such as deflation and market pressures affecting gross margins, the company’s management remains confident in achieving long-term gross margins above 30%.
According to TipRanks, Vermeulen is a 2-star analyst with an average return of -0.9% and a 42.22% success rate. Vermeulen covers the Industrials sector, focusing on stocks such as Experian, ISS, and Elis SA.