Ferguson Enterprises (FERG, Financial) has successfully completed the acquisition of two strategic businesses, broadening its reach in North America. The company finalized its purchase of Independent Pipe & Supply Corp. and National Fire Equipment and National Fire Fabrication, significantly enhancing its presence in both the United States and Canada.
Based in Canton, Massachusetts, Independent Pipe & Supply Corp. is a prominent distributor specializing in pipe, valves, and related products. It operates eight locations throughout the Northeast, including Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, and New York. This acquisition, completed on March 31, bolsters Ferguson's existing footprint and strengthens its fabrication capabilities in the New England region.
Similarly, Ferguson has expanded its operations in Canada through the acquisition of National Fire, headquartered in Toronto, Ontario. Known for its leadership in fire and fabrication products and services, National Fire operates seven locations across eastern and western Canada, along with two dedicated fabrication facilities. This expansion, finalized on April 14, is set to integrate into Ferguson's Canadian subsidiary, Wolseley Canada. It will allow Ferguson to further develop its Fire & Fabrication customer group strategy, enhancing the product offerings available to National Fire’s clientele.
These acquisitions represent Ferguson's strategic commitment to strengthening its market position and extending its service capabilities across North America. The moves are expected to provide increased value to customers and drive growth through expanded product offerings and enhanced geographic coverage.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Ferguson Enterprises Inc (FERG, Financial) is $194.16 with a high estimate of $258.00 and a low estimate of $168.00. The average target implies an upside of 17.13% from the current price of $165.77. More detailed estimate data can be found on the Ferguson Enterprises Inc (FERG) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Ferguson Enterprises Inc's (FERG, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ferguson Enterprises Inc (FERG, Financial) in one year is $177.67, suggesting a upside of 7.18% from the current price of $165.77. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ferguson Enterprises Inc (FERG) Summary page.
