Ferguson Enterprises Inc. (FERG) Investment Update

Goldman Sachs downgraded Ferguson Enterprises (FERG) to Neutral from Buy, citing concerns over near-term volume weakness in residential construction and moderating pricing tailwinds. The 12-month price target was cut to $265.

Key Takeaways

• 1.Downgraded FERG to Neutral from Buy due to near-term subdued topline growth and limited margin expansion potential.
• 2.Residential construction market weakness remains a significant headwind for growth, with recovery delayed by a high-interest-rate environment.
• 3.Price target reduced to $265 from $315, reflecting lower target EV/EBITDA multiple (15.5x) and downward estimate adjustments.

Table of Contents

• Thesis in charts
• Focus on resi weakness
• Estimate changes
• Valuation
• Upside/downside risks
• Company Profile
• Disclosure Appendix

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