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Strategic Growth and Scarcity Value Drive Buy Rating for UL Solutions Inc.

Stifel Nicolaus analyst Shlomo Rosenbaum maintained a Buy rating on UL Solutions Inc. Class A (ULSResearch Report) today and set a price target of $77.00.

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Shlomo Rosenbaum’s rating is based on the consistent growth trajectory and strategic positioning of UL Solutions Inc. Class A. The company has demonstrated a reliable growth pattern, with revenue increasing through various economic cycles, ranging from low to upper single-digit percentages. This stability in growth, coupled with effective margin management, has positioned the company favorably in the market.
Additionally, UL Solutions Inc. holds a unique position as the only U.S. listed Testing, Inspection, and Certification (TIC) player, which adds to its scarcity value and attractiveness to investors. The company’s efforts to enhance operational efficiencies and leverage have begun to yield positive results, contributing to a favorable outlook. Consequently, Rosenbaum has raised the target price to $77, reflecting a valuation of 18.2 times the expected 2026 EBITDAR, which supports the Buy rating.

In another report released on May 7, Raymond James also maintained a Buy rating on the stock with a $72.00 price target.

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