FERG - Ferguson rated Outperform in new research coverage at William Blair

2023-07-07 11:31:53 ET

Ferguson ( NYSE: FERG ) on Friday was rated Outperform in new research coverage by analysts at financial-services firm William Blair. They said the distributor of plumbing and heating supplies is poised for gains as investors see more signs of a recovery in the U.S. housing market.

“Roughly 75% of its U.S. revenue is generated from markets where it holds the No. 1 or No. 2 position,” Ryan Merkel, analyst at William Blair, said in a July 7 report. “Over the medium term, we forecast Ferguson ( FERG ) will increase sales 7%-12%, versus 3%-5% overall market growth, leading to low- to mid-teens EPS growth.”

The next-12-month enterprise value-to-EBITDA multiple for Ferguson ( FERG ) may increase from 12 times to a range of 14 to 15 times “as investors better appreciate Ferguson’s ( FERG ) business strategy and housing sentiment improves,” according to the report.

Seeking Alpha contributor IM Investing rates Ferguson ( FERG ) as a Buy with the possibility that the stock will be added to more market indexes . Columnist Arbab Shahzeb also has a Buy rating on Ferguson ( FERG ) on its growth record .

More about Ferguson

• Ferguson declines after reporting quarterly results
• Buy stocks of industrial distributors on price weakness: Baird

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