Ferguson Stock Drops As Q2 EPS Miss, Margin Squeeze Overshadow Sales Growth

Written by Emily J. Thompson, Senior Investment Analyst

FERG+0.89%

PHO-0.85%

AQWA-0.48%

Source: Benzinga

Updated: Mar 11 2025

0mins

Source: Benzinga

Second Quarter Results: Ferguson Enterprises reported net sales of $6.87 billion, a 3% increase year-over-year, surpassing expectations, but faced declines in adjusted EBITDA and EPS, with gross margins contracting.
Future Outlook: The company anticipates low-single-digit net sales growth for FY25 and has revised its adjusted operating margin outlook downwards, while also emphasizing cost management and strategic investments to enhance efficiency and customer service.

FERG

$254.02+Infinity%1D

Analyst Views on FERG

Wall Street analysts forecast FERG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FERG is 261.34 USD with a low forecast of 220.00 USD and a high forecast of 291.99 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

17 Analyst Rating

13 Buy

4 Hold

0 Sell

Strong Buy

Current: 251.770

Low

220.00

Averages

261.34

High

291.99

Current: 251.770

Low

220.00

Averages

261.34

High

291.99

RBC Capital

Mike Dahl

Outperform

maintain

$243 -> $247

2026-01-09

Reason

RBC Capital

Mike Dahl

Price Target

$243 -> $247

AI Analysis

2026-01-09

maintain

Outperform

Reason

RBC Capital analyst Mike Dahl raised the firm's price target on Ferguson to $247 from $243 and keeps an Outperform rating on the shares. Goldman remains cautious into early 2026, with housing affordability still challenging and R&R potentially inflecting later in the year, the analyst tells investors in a research note. Nonresidential markets are mixed, key risks include policy changes, rates, and tariffs, and the sector is expected to remain volatile, with homebuilders the most cautious, distribution favored, and building products OEMs offering relatively attractive valuations.

RBC Capital

Outperform

maintain

$243 -> $247

2026-01-09

Reason

RBC Capital

Price Target

$243 -> $247

2026-01-09

maintain

Outperform

Reason

RBC Capital raised the firm's price target on Ferguson to $247 from $243 and keeps an Outperform rating on the shares. RBC Capital remains cautious into early 2026, with housing affordability still challenging and R&R potentially inflecting later in the year, the analyst tells investors in a research note. Nonresidential markets are mixed, key risks include policy changes, rates, and tariffs, and the sector is expected to remain volatile, with homebuilders the most cautious, distribution favored, and building products OEMs offering relatively attractive valuations.

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Morgan Stanley

NULL -> Overweight

maintain

2026-01-06

Reason

Morgan Stanley

Price Target

2026-01-06

maintain

NULL -> Overweight

Reason

Morgan Stanley raised the firm's price target on Ferguson to 20,100 GBp from 19,300 GBp and keeps an Overweight rating on the shares.

Deutsche Bank

Hold

maintain

$237 -> $246

2025-12-11

Reason

Deutsche Bank

Price Target

$237 -> $246

2025-12-11

maintain

Hold

Reason

Deutsche Bank raised the firm's price target on Ferguson to $246 from $237 and keeps a Hold rating on the shares. The firm updated the company's model post the fiscal Q1 report.

About FERG

Ferguson Enterprises Inc. is a value-added distributor serving specialized professionals in the residential and non-residential North American construction market. The Company’s geographical segments include the United States and Canada. The Company provides a wide range of products and services, such as plumbing, heating, ventilation and air conditioning (HVAC), appliances, and lighting to pipes, valves, and fittings (PVF), water and wastewater solutions, and more. It sells through a common network of distribution centers, branches, counter service and specialist sales associates, showroom consultants and e-commerce channels. The Company serves various industries, such as plumbing, HVAC, commercial / mechanical, facilities supply, fire & fabrication, industrial, builder, waterworks. The Company’s brands include Armateck, Durastar, FNW, National Fire Products, Pollardwater, PROFLO, PROSELECT, Raptor, Signature Hardware, and Westcraft.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.