Bank of America just raised its EUR/USD forecast
On Wednesday, UBS analysts increased the price target for Ferguson Plc stock (NYSE: FERG) to $204, up from the previous target of $173, while maintaining a Neutral rating. The adjustment follows the company’s financial results for the fiscal third quarter of 2025. The stock, currently trading at $213.57, has shown remarkable momentum with a 15.83% gain in the past week. According to InvestingPro analysis, Ferguson appears to be trading above its Fair Value, suggesting investors should carefully consider entry points.
The analysts revised their earnings per share estimates for Ferguson, increasing projections for fiscal years 2025 to 2027. The updated estimates are $9.49 for FY25, $11.15 for FY26, and $12.75 for FY27. This change is attributed to improved revenue and margin expectations. InvestingPro data reveals that five analysts have recently revised their earnings estimates upward, with the company maintaining a healthy gross profit margin of 30.46%.
UBS analysts explained that the new price target is based on a price-to-earnings ratio of approximately 16 times the estimated EPS for FY27, aligning with Ferguson’s historical average multiple. Previously, they had used a target multiple of about 15 times P/E due to persistent deflation and inconsistent volume.
Despite the raised price target, UBS maintained a Neutral rating on Ferguson stock. The firm noted the balance between the company’s strong recent performance and the limited visibility into broader macroeconomic conditions.
The analysts expressed confidence in Ferguson’s ability to outperform its end markets, citing encouraging execution in the fiscal third quarter. However, they believe the risk-reward profile for the stock remains balanced.
In other recent news, Ferguson PLC (NYSE:FERG) reported its third-quarter earnings for 2025, revealing earnings per share of $2.50 and revenue of $7.62 billion, both slightly below market expectations. Despite these misses, the company revised its full-year guidance to anticipate low to mid-single-digit revenue growth. Analysts from RBC Capital raised Ferguson’s stock price target from $189 to $231, maintaining an Outperform rating due to the company’s strong financial performance and strategic initiatives. Similarly, Truist Securities increased the price target to $240 from $200, with a Buy rating, following Ferguson’s fiscal third-quarter results that showed sales and EBIT margins surpassing expectations. The analysts highlighted strong growth in sectors like HVAC, Waterworks, and Commercial/Industrial, attributing this to positive volume and a robust residential HVAC market. They also noted a slowdown in inflation, which could benefit Ferguson’s future results. Ferguson’s strategic focus on maintaining price discipline and achieving a rebound in gross margin percentage was also emphasized by RBC Capital as a positive factor in their evaluation.
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