Ferguson upgraded to Buy from Underperform at BofA

BofA double upgraded Ferguson (FERG) to Buy from Underperform with a price target of $225, up from $185. The firm sees an attractive entry point at current share levels “into a long term growth compounder.” The potential for higher U.S. inflation could support Ferguson’s pricing and margin from the second half of 2025 and consensus estimates are now “realistic,” the analyst tells investors in a research note. BofA also notes that key demand lead indicators remain resilient despite the high interest rates environment, commodity prices are stabilizing and Ferguson is outperforming its underlying markets in the last few quarters.