Sam Reid, an analyst from Wells Fargo, maintained the Buy rating on Ferguson PLC (FERG – Research Report). The associated price target was raised to $230.00.
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Sam Reid has given his Buy rating due to a combination of factors that highlight Ferguson PLC’s strong performance and promising outlook. The company reported a robust third quarter, surpassing expectations with a positive earnings surprise and an optimistic guidance increase. This performance has led to a justified rise in share prices, prompting an upward revision of estimates and price targets, with potential momentum extending into fiscal year 2026.
Key drivers for this positive outlook include stabilization in pricing after a prolonged period of deflation and a notable improvement in gross margins, which increased by 50 basis points year-over-year. Additionally, the company’s strategic cost-saving measures have resulted in minimal deleverage in SG&A expenses. Ferguson’s organic sales growth, coupled with strong performance across various market segments, further supports the Buy rating. The company’s guidance revision for fiscal year 2025, reflecting better-than-expected third-quarter results, also contributes to the optimistic sentiment.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $200.00 price target.
FERG’s price has also changed moderately for the past six months – from p17090.000 to p15240.000, which is a -10.83% drop .
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