Ferguson price target raised to $235 from $189 at Oppenheimer

Oppenheimer raised the firm’s price target on Ferguson (FERG) to $235 from $189 and keeps an Outperform rating on the shares. The firm notes Ferguson’s Q3 revenue and adjusted operating profit grew 4.3% and 6.1% year-over-year, respectively, all exceeding its estimates and consensus. Ferguson appeared to gain share in both its residential/non-residential end-markets, seemingly via HVAC growth initiatives and increased activity on large capital projects, respectively. Simultaneously, pricing is headed in a favorable direction, and likely to improve from flattish year-over-year in Q3 to growth year-over-year in Q4, Oppenheimer adds. Ferguson increased FY25 revenue and operating margin guidance.