UL Solutions Inc. Class A (ULS) has received a new Buy rating, initiated by Stifel Nicolaus analyst, Shlomo Rosenbaum.
Shlomo Rosenbaum has given his Buy rating due to a combination of factors that highlight UL Solutions Inc.’s (ULS) strong position in the Testing, Inspection, and Certification (TIC) services sector. Rosenbaum identifies ULS as the market leader in terms of revenue within the Outsourced Product TIC category, which is projected to grow at a steady pace. He emphasizes the company’s dominant market share in the Industrial TIC segment and robust presence in the Consumer TIC area. Rosenbaum also notes the potential for revenue growth and margin expansion, as well as the company’s strategy to enhance its business through strategic tuck-in acquisitions.
The analyst’s optimistic view extends to the broad market trends that favor ULS, with increasing demand for outsourced TIC services driven by cost control, labor shortages, and the need to comply with new standards and regulations. Furthermore, the industry’s characteristics of long-term customer relationships, recurring revenue, and stable demand underpin the company’s valuation. Despite some risks such as high exposure to China and the complexities of continued mergers and acquisitions, Rosenbaum’s analysis suggests that ULS is well-positioned for growth, supported by a moderate debt level and a history of successful acquisitions. This underpins the Buy rating and the $40 target price for ULS shares.
Rosenbaum covers the Industrials sector, focusing on stocks such as Equifax, TransUnion, and First Advantage. According to TipRanks, Rosenbaum has an average return of 5.0% and a 56.63% success rate on recommended stocks.
In another report released today, Robert W. Baird also initiated coverage with a Buy rating on the stock with a $40.00 price target.
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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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