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Ferguson (New York stock market :FERG) Friday was rated Outperform in new research coverage by analysts at financial services firm William Blair. They said the plumbing and heating supplies distributor is poised for gains as investors see more signs of recovery in the US real estate market.
“About 75% of its revenue in the United States comes from the markets where it holds the No. 1 or No. 2 position,” Ryan Merkel, an analyst at William Blair, said in a July 7 report. “Over the medium term, we expect Ferguson (FERG) will increase sales by 7% to 12%, compared to an overall market growth of 3% to 5%, which will drive EPS growth between teens and teens. »
The enterprise value/EBITDA multiple for the next 12 months for Ferguson (FERG) may increase from 12 times to a range of 14 to 15 times “as investors better appreciate Ferguson (FERG) business strategy and housing sentiment are improving,” according to the report.
| William Blair’s estimates for Ferguson (FERG), July 7 | |
| Adjusted EPS | |
| 2023E | $9.57 |
| 2024E | $9.60 |
| EBITDA (millions) | |
| 2023E | $3,033 |
| 2024E | $3,054 |
Seeking Alpha Contributor IM Ferguson Investment Rate (FERG) as a purchase with the possibility of stock being added to more stock indices. Columnist Arbab Shahzeb also has a buy rating on Ferguson (FERG) on his growth record.
