Ferguson downgraded to Neutral at BofA on volume and margin risks

BofA analyst Arnaud Lehmann downgraded Ferguson to Neutral from Buy with a price target of 12,000 GBp, down from 13,000 GBp. He sees downside risks to volumes from weaker residential demand and slowing non-residential activity as well as downside risks to margins as inflation starts to fade, Lehmann tells investors. While inclusion in the S&P 500 index "could be a support sometime in 2023," the timing of such an addition of the stock to the index is uncertain, Lehmann added.