Ferguson Plc. (FERG) PT Raised to $204 at UBS

UBS analyst John Lovallo raised the price target on Ferguson Plc. (NYSE: FERG) to $204.00 (from $173.00) while maintaining a Neutral rating.

The analyst commented, "Following FY3Q25 financial result, we raise our FY25e-FY27e adj EPS from $8.70 to $9.49, $9.85 to $11.15 and $11.55 to $12.75, respectively. Our revised forecasts are driven by higher revenue and margin expectations. We also raise our PT on FERG shares from $173 to $204, now based on roughly 16x our FY27e EPS (~15x prior). At 16x P/E, FERG would trade roughly in-line with its historical average multiple, which we believe is warranted given the balance between resilient recent results and limited visibility into the macro. We had previously been using a target multiple of ~15x P/E which was modestly below the historical average given persistent deflation and choppy volume. We continue to expect FERG to outperform its end markets and were encouraged by FY3Q execution. However, we believe risk-reward remains fairly even and therefore maintain our Neutral rating on FERG shares."

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