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Investing.com - RBC Capital has raised its price target on Ferguson Plc. (NYSE:FERG) to $243.00 from $231.00 while maintaining an Outperform rating on the stock. Ferguson, a prominent player in the Trading Companies & Distributors industry with a market capitalization of $45.7 billion and annual revenue of $30.8 billion, has shown robust financial health according to InvestingPro data.
The price target increase follows Ferguson’s fourth-quarter results, which RBC noted exceeded expectations despite incremental weakness in end market demand that was "better than some feared." The company’s strong financial position is reflected in its healthy current ratio of 1.68, indicating solid liquidity to meet short-term obligations.
RBC has increased its fiscal year 2026 adjusted operating profit estimate by 3% to $3.30 billion, positioning its calendar year 2025 estimate modestly above the midpoint of management’s new guidance range of approximately $2.85-$3.03 billion. While the stock has seen a remarkable 44% price increase over the past six months, InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The firm cited Ferguson’s "balanced end market mix and share gain" as providing resilience, noting ongoing demand strength in non-residential and mega-projects despite near-term headwinds in new residential, repair/maintenance/improvement, and HVAC segments.
RBC also highlighted a "solid positive inflection in pricing" as a factor supporting its continued Outperform rating on Ferguson shares.
In other recent news, Ferguson Plc reported its fourth-quarter earnings for 2025, showcasing a solid performance with earnings per share (EPS) of $3.48, surpassing the forecasted $3.29. Despite this earnings beat, the company reported revenues of $8.5 billion, which fell short of the expected $8.67 billion. Following these results, several analysts adjusted their price targets for Ferguson. Wells Fargo raised its price target to $275, citing the company’s strong business model and capacity for market share gains, while maintaining an Overweight rating. Truist Securities also increased its target to $260, highlighting significant growth in the non-residential segment. Meanwhile, UBS adjusted its price target to $225, maintaining a Neutral rating and revising its earnings estimates for the coming years due to more conservative margin expectations. These developments reflect a mixed outlook from analysts, with some expressing optimism about Ferguson’s growth potential.
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