11:10 AM EDT, 06/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our target price to USD216 from USD174 based on an EV/EBITDA of 15.3x (updated five-year average valuation). We believe that FERG deserves an average valuation level due to its consistent execution, stable margins, and balanced capital allocation. FERG reported strong Q3 FY 25 (Jul.) results with sales of USD7.62B and adjusted operating profit of USD715M, beating the consensus estimates of USD7.43B and USD597M, respectively. Net sales grew 4.3% Y/Y, led by 5% volume growth and a 1% acquisition contribution, while gross margin expanded 50 bps to 31.0%. Management upgraded its FY 25 outlook and now expects low- to mid-single-digit net sales growth (up from low-single-digit growth) and adjusted operating margin of 8.5%-9.0% (up from 8.3%-8.8%). We maintain FY 25 EPS at USD9.06 but increase FY 26 EPS to USD9.91 from USD9.87. FERG is now a Buy due to its improved earnings visibility, strong free cash flow, continued share repurchases, and a 5% dividend hike.