Deutsche Bank lifted its price target on Ferguson to 11,800.0p from 10,100.0p on Thursday as it pointed to further upside from growth in the US housing market and economy.
It said Ferguson’s investment case remains unchanged: delivering consistent growth in fragmented markets.
“It has successfully generated organic and M&A-led growth historically, with initiatives like own-brand products helping to raise margins,” DB said.
“With a period of likely steady growth in the US housing market and economy, we believe Ferguson’s investment thesis should continue to work.”
Deutsche Bank kept its rating on the shares at ‘buy’.
Analysts at Berenberg hiked their target price on infrastructure group Hill & Smith from 1,775.0p to 1,995.0p on Thursday following the firm’s “impressive” interim results.
Berenberg said Hill & Smith offered “a package of intrinsic and extrinsic drivers” that it believes will enable the firm to deliver higher sales growth, improved profitability, better portfolio management and a stronger environmental, social, and governance story in coming years.
In moving its target price on the stock higher, the German bank cited Hill & Smith’s record sales and operating profits in the first half of its current trading year, strategic developments like its recent portfolio realignment and an “attractive medium-term outlook” as a result of the US government’s landmark infrastructure bill).
“There is a positive outlook for private and public infrastructure spending (roads, in particular) and we think Hill & Smith has an opportunity to extend its product range and enter new markets that offer a strong macro backdrop and regulatory drivers,” said Berenberg, which stood by its ‘buy’ rating on the stock.
