J.P. Morgan analyst Andrew Steinerman downgraded the rating on UL Solutions Inc. Class A to a Hold today, setting a price target of $84.00.
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Andrew Steinerman has given his Hold rating due to a combination of factors that influence the current valuation of UL Solutions Inc. Class A. Despite the company’s strong performance in the third quarter of 2025, with earnings and revenue growth surpassing expectations, the stock has experienced a significant year-to-date increase of 74%, which makes the risk-reward profile less attractive compared to other opportunities in the Business Services sector.
Moreover, while UL Solutions is recognized as a leading firm in the Business Services industry, benefiting from trends like increased power demand and digitization, the stock’s current valuation appears to have outpaced the company’s fundamental business growth. The restructuring initiatives, although expected to enhance margins in the long term, are likely to suppress organic growth in 2026. Consequently, the stock’s premium valuation, coupled with these factors, justifies a more cautious Hold rating at this time.
According to TipRanks, Steinerman is a 5-star analyst with an average return of 9.0% and a 64.68% success rate. Steinerman covers the Industrials sector, focusing on stocks such as ManpowerGroup, UL Solutions Inc. Class A, and Cintas.