Analysts on Wall Street Lower Ratings for These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts on Wall Street Lower Ratings for These 10 Stocks.

05. Ferguson plc (NYSE:FERG)

Price Reaction after the Downgrade: -3.59 (-2.33%)

BofA Securities analyst Arnaud Lehmann recently adjusted the outlook for Ferguson plc (NYSE:FERG) by downgrading the stock from Neutral to Underperform. This shift in perspective was accompanied by a notable reduction in the price target, now set at $138.00, down from the previous $160.00. This downgrade by BofA Securities suggests a more cautious view on Ferguson plc (NYSE:FERG) performance. The latest market data indicates that Ferguson plc (NYSE:FERG) stock is currently priced at $150.20, reflecting a decrease of 2.3% following the downgrade.

Right Tail Capital made the following comment about Ferguson plc (NYSE:FERG) in its Q3 2023 investor letter:

“Ferguson plc (NYSE:FERG) is a leading US-focused distributor ($33B mkt cap) of plumbing and HVAC supplies that is split between non-residential (48%) and residential (52%) as well as repair/remodel (60%) and new construction (40%). Like other high-quality distributors, Ferguson benefits from a prime spot in its value chain. It has many suppliers (over 30,000), customers (~1 million), and small competitors. By providing great service and parts availability, Ferguson guides its customers to the parts they want in a timely fashion.

I think last year the market was worried that Ferguson had over-earned due to rising prices and excess demand during covid. Furthermore, the company had removed its primary listing in the United Kingdom that caused some force selling among European index holders. Right Tail had the key insight that…” (Click here to read the full text)