William Blair analyst Andrew Nicholas has maintained their bullish stance on ULS stock, giving a Buy rating yesterday.
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Andrew Nicholas has given his Buy rating due to a combination of factors that highlight the strong performance and future potential of UL Solutions Inc. Class A. The company’s fourth-quarter results exceeded expectations, with revenue coming in significantly higher than predicted and contributing to an improved adjusted EBITDA margin. This financial strength is further supported by a positive outlook for 2025, which aligns with the firm’s historically conservative guidance approach.
Moreover, UL Solutions showed a robust year-over-year growth in certification services revenue, primarily driven by industrial segment demand. Even though some of this growth may have been accelerated by clients’ reactions to potential tariff impacts, the company anticipates that the overall influence of tariffs will remain limited. The demand for their innovative solutions is largely driven by product diversity and technological advancement rather than sheer volume. Additionally, the company’s industrial segment has consistently demonstrated double-digit organic growth, fueled by areas such as energy and automation, further reinforcing the Buy recommendation.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $59.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ULS in relation to earlier this year.