William Blair analyst Ryan Merkel has maintained their bullish stance on FERG stock, giving a Buy rating yesterday.
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Ryan Merkel has given his Buy rating due to a combination of factors that indicate a promising outlook for Ferguson PLC. The company is expected to surpass third-quarter expectations, driven by improved demand and upcoming high-single-digit tariff price increases. Merkel has adjusted the third-quarter earnings per share estimate to $2.18, which is notably higher than the consensus estimate of $2.03, based on industry feedback indicating steady demand growth.
Additionally, favorable pricing trends in steel and copper, along with modest increases in finished goods pricing, are expected to counterbalance the ongoing challenges with PVC. Despite some uncertainties related to tariffs and a subdued renovation and repair market, there is a belief in significant pent-up demand and positive long-term prospects, supported by megaprojects. These elements contribute to Merkel’s confidence in Ferguson PLC’s potential, making it an opportune time for investment.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $200.00 price target.