In a report released yesterday, Philip Ng from Jefferies maintained a Buy rating on Ferguson PLC (FERG – Research Report), with a price target of $210.00.
Philip Ng has given his Buy rating due to a combination of factors that highlight Ferguson PLC’s strategic positioning and growth potential. The company has successfully increased its market share in the HVAC and waterworks sectors, driven by strategic investments that have led to accelerated volume growth. Despite the challenges posed by deflation and increased SG&A expenses, Ferguson has implemented measures such as price controls and headcount reductions to improve its margins, which Ng finds encouraging.
Furthermore, Ferguson’s ability to maintain volume growth in a volatile market environment is impressive, with the company outperforming in sectors like large capital projects and data centers. While the pricing environment remains dynamic, with modest price increases expected, Ferguson’s investments in infrastructure and HVAC are expected to drive long-term growth. Ng believes that the risk-reward profile of Ferguson is compelling, especially as the company is well-positioned for margin expansion once deflationary pressures ease and investment levels normalize.
In another report released today, Truist Financial also maintained 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 p14350.000 to p12280.000, which is a -14.43% drop .
Questions or Comments about the article? Write to editor@tipranks.com