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Jun 10 2019, 08:15 IST/BST
Ferguson
Q3 sales slowdown likely to put pressure on estimates
- Sectors : Builders Merchants
- Companies : Ferguson
DAVY VIEW
Ferguson has reiterated its profit guidance despite a material slowdown in the pace of sales growth in the US. A moderation of growth was well-flagged but was still worse than we expected. While confident of meeting estimates for the current financial year, the weaker activity likely puts pressure on FY 2020 market estimates. The balance sheet remains in fine shape so a fresh $500m share buyback has been announced. With sales rates slowing and downside risk to estimates, we maintain our ‘Neutral’ rating.
