JPMorgan downgrades UL Solutions stock rating to Neutral after 74% YTD gain

Published 05/11/2025, 07:52
JPMorgan downgrades UL Solutions stock rating to Neutral after 74% YTD gain

Investing.com - JPMorgan downgraded UL Solutions Inc (NYSE:ULS) from Overweight to Neutral on Wednesday, while raising its price target to $84.00 from $70.00.

The downgrade comes despite UL Solutions reporting third-quarter 2025 adjusted earnings per share of $0.56 on Tuesday, exceeding JPMorgan’s estimate of $0.46.

UL Solutions posted organic, constant currency revenue growth of 6.3% year-over-year, surpassing JPMorgan’s projection of 5.2%. The company exceeded growth and EBITDA margin estimates across all three divisions.

JPMorgan cited UL Solutions’ 74% year-to-date stock gain, compared to the S&P 500’s 15% increase, as the primary reason for the downgrade, suggesting better risk-reward opportunities exist elsewhere in its Business Services coverage.

The firm acknowledged UL Solutions remains a "best-in-class Business Services firm" benefiting from secular tailwinds in power demand and digitization, and indicated it could reconsider its rating if the company translates these advantages into higher revenue growth.

In other recent news, UL Solutions Inc. reported impressive financial results for the third quarter of 2025. The company exceeded earnings expectations with an earnings per share (EPS) of $0.56, compared to the forecasted $0.40, representing a 40% surprise. Revenue for the quarter reached $783 million, highlighting strong demand across various segments. This robust performance is attributed to strategic operational adjustments made by the company. Additionally, no major mergers or acquisitions were reported during this period. Analyst firms have not released any recent upgrades or downgrades for UL Solutions. These developments indicate a period of stability and growth for the company.

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