William Blair starts Ferguson with Outperform, sees 24% upside

William Blair initiated coverage of Ferguson with an Outperform rating, calculating potential for the shares rise 24% to $194. Ferguson is a leading distributor serving “diverse, fragmented markets,” the analyst tells investors in a research note. The firm likes the company’s market leadership, global scale, consistent growth, and small share of a “massive” total addressable market. The company has 9% share of its $340B end-markets, which are mostly served by local competitors that lack global scale, says Blair. It notes the shares trade at a discount to peers.