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Investing.com - UBS raised its price target on UL Solutions Inc (NYSE:ULS) to $75.00 from $70.00 on Tuesday, while maintaining a Neutral rating on the stock. The company, currently trading at $74.19 and near its 52-week high of $75.56, has demonstrated strong momentum with a 46% year-to-date return. According to InvestingPro data, the stock trades at a P/E ratio of 40.5x, suggesting a premium valuation.
The firm cited expectations that UL Solutions’ third-quarter report could be a positive event, with organic growth potentially re-accelerating from second-quarter levels.
UBS noted that tariff-related impacts from April and May likely won’t recur to the same extent in the third quarter, positioning the company for improved performance.
With Street estimates described as "conservative enough" by UBS, the firm believes UL Solutions shares appear poised for a "clean beat-and-raise quarter" that could recalibrate growth expectations.
UL Solutions stock has rallied in recent weeks, which UBS suggests may be in anticipation of stronger third-quarter results from the company.
In other recent news, UL Solutions reported its second-quarter 2025 adjusted earnings per share at $0.52, surpassing JPMorgan’s estimate of $0.49. However, the company’s organic, constant currency revenue growth of 5.5% year-over-year did not meet the bank’s projection of 6.2%, with growth falling short across all three divisions. Despite this, JPMorgan raised its price target for UL Solutions to $70 from $64, maintaining an Overweight rating. Additionally, UL Solutions declared a quarterly dividend of $0.13 per share, payable on September 8 to shareholders of record as of August 29. The company also announced it is expanding its evaluation and verification services into the industrial software sector, with Siemens as the first recipient of UL Verified Marks for its industrial manufacturing software. Furthermore, UL Solutions opened its first commercial robot testing laboratory in Uiwang, South Korea, focusing on safety standards for various service robots. In leadership changes, Alex Dadakis will become President of Testing, Inspection and Certification, while Gitte Schjøtz will take over Dadakis’ previous role. These developments reflect UL Solutions’ ongoing strategic initiatives and growth plans.
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