Stifel reiterates Buy rating on UL Solutions stock, sees pullback as buying opportunity

Published 05/08/2025, 22:22
Stifel reiterates Buy rating on UL Solutions stock, sees pullback as buying opportunity

Investing.com - Stifel has reiterated its Buy rating and $77.00 price target on UL Solutions Inc (NYSE:ULS) despite the stock’s recent 10.6% decline compared to the S&P 500’s 0.4% drop.

The research firm believes the negative market reaction may stem from investors expecting immediate benefits from tariffs, while UL Solutions actually experienced impacts in April and May due to client responses.

Stifel also addressed concerns about the implied second-half 2025 revenue growth slowdown in the company’s guidance, suggesting UL Solutions is likely being conservative rather than experiencing an actual slowdown in business trajectory.

The firm expressed confidence that UL Solutions should perform well in the second half of 2025 despite current market concerns.

Stifel recommended investors use the recent stock pullback as a buying opportunity, maintaining its positive outlook on UL Solutions’ fundamentals.

In other recent news, UL Solutions reported its Q2 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $0.52, compared to the forecasted $0.46. The company also reported revenue of $776 million, marking a 6.3% increase from the previous year. These results come amidst broader market concerns that were discussed during the company’s earnings call. Despite the positive earnings and revenue results, UL Solutions’ stock experienced a decline, influenced by investor reactions to potential risks. No significant mergers or acquisitions were announced in the recent updates. Furthermore, there were no analyst upgrades or downgrades reported for UL Solutions at this time. These developments provide insight into the company’s current financial health and market positioning.

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