William Blair starts UL Solutions at Outperform on competitive advantages

William Blair initiated coverage of UL Solutions with an Outperform rating. UL is the largest testing, inspection, and certification provider in North America and the leading provider of outsourced product services globally, the analyst tells investors in a research note. The firm says that with a highly reputable brand, strong technical expertise, scale, and global reach, the company “enjoys unique competitive advantages and will continue to drive strong organic and inorganic top-line growth in a market with significant barriers to entry.” Blair believes the stock’s multiple can earn a premium to its publicly traded peers versus today’s modest discount.