Ferguson PLC (LSE:FERG) is in a prime position to benefit from rising material prices, says Barclays.
The US-focused builders’ merchant produced bumper numbers yesterday with annual sales up 14%, profits up 46% and a new US$1bn share buyback announced.
Ferguson’s fourth quarter was another strong one said Barclays, with further evidence the business can greatly profit during inflationary conditions where the market prioritises availability
“We expect these conditions to continue throughout the first half of the current year supporting the full-year numbers and see the business as well-positioned to take share consistently in the future.”
The bank’s forecast for earnings in 2022 rises by 12% with a price target of GBP115, in line with the earnings upgrade.
Shares today rose 2.8% to GBP105.20.
