Ferguson price target raised to $245 from $229 at Barclays

Barclays analyst Matthew Bouley raised the firm’s price target on Ferguson to $245 from $229 and keeps an Overweight rating on the shares. The firm thinks the positive stock reaction post earnings reflected Ferguson “simply setting an appropriate bar” for its initial fiscal 2025 guidance, even with the outlook below a consensus that was widely viewed to be stale. Ferguson is a “strong growth story with resilient margin performance that is mired in choppy end markets with modest deflation,” the analyst tells investors in a research note. Barclays believes that by setting an achievable initial 2025 bar ahead of a rate reduction cycle, a return to earnings “beats and raises” should bring a valuation re-rating.