In a report released yesterday, Stephanie Moore from Jefferies reiterated a Buy rating on UL Solutions Inc. Class A (ULS – Research Report), with a price target of $44.00.
Stephanie Moore’s rating is based on the robust performance of UL Solutions Inc. Class A, which exceeded expectations in several key financial metrics during the first quarter. The company demonstrated strong organic growth of 7.5%, surpassing the anticipated growth rate. This growth is seen as a positive indicator of the company’s potential to meet its mid-single-digit percentage growth targets. Moreover, there is an anticipation of EBITDA margin expansion, driven by industrial growth coupled with effective cost productivity measures, which reinforces the Buy rating.
The report also highlights the company’s solid quarter in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA), which aligned closely with both Jefferies’ and consensus estimates. The company’s performance was bolstered by higher pricing in its Testing services and a significant improvement in Consumer EBITDA margin. Despite some areas of underperformance, such as the S&A organic growth and Industrial EBITDA margin, the overall outlook remains positive. The share price increase post-earnings call is attributed to these strong results and the expectation that UL Solutions will continue to benefit from global megatrends, driving further growth and margin expansion throughout the fiscal year.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $41.00 price target.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ULS in relation to earlier this year.
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UL Solutions Inc. Class A (ULS) Company Description:
UL Solutions transforms safety, security, and sustainability challenges into opportunities for customers in more than 100 countries. UL Solutions delivers testing, inspection and certification services, together with software products and advisory offerings, that support our customers¿ product innovation and business growth.
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