Citi analyst Arthur Truslove maintained a Buy rating on UL Solutions Inc. Class A (ULS – Research Report) yesterday and set a price target of $60.50.
Arthur Truslove’s rating is based on the potential for UL Solutions to enhance its profit margins and exceed market expectations following its recent IPO and the divestment by its not-for-profit parent. The company’s projected adjusted EPS for 2025 is anticipated to surpass the consensus, indicating a positive outlook for earnings growth.
Additionally, the Software and Advisory division is expected to contribute significantly to margin improvements, with recent performance suggesting higher profitability in the coming year. The Consumer business also presents opportunities for margin expansion, as its current operating margin is considered lower than typical. Furthermore, the reduction in IPO-related costs and decreased reliance on external contractors in the Industrial division are expected to support financial performance.
In another report released on February 23, 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.