June 10, 2019 / 9:21 AM / 10 days ago

BUZZ-Street View: Ferguson under pressure as U.S. slowdown weighs

** Shares of British plumbing products distributor Ferguson Plc fell 6.2% to 5016p, slipping to the bottom of the blue-chip index

** Reports Q3 rev below analysts’ estimates as growth slowed in the United States, its largest market

** Says organic revenue growth slowed in U.S. from 9.7% in Q2 to 3.3% Q3

** Stock erases all yearly gains

MACRO FEARS WEIGH ON SHARES

** Davy (“neutral”): Davy says moderation of growth was well-flagged but still worse than broker expected

** Davy says while all major business units grew, weaker residential and remodel demand impacted on activity

** Stifel (“hold”; PT 5,600p): Stifel says U.S. data mixed recently not helped by poor weather at beginning of calendar year in Ferguson’s key U.S. market

** Canaccord Genuity (“buy”; PT 5,700p): Says US performance virtually in line with forecasts but growth in market clearly slowed abruptly

** Canaccord says slowing market not helped by a strong comparative but residential markets have clearly slowed

** Jefferies (“buy”, Pt 6,130p): Jefferies signals management’s confidence in ongoing cash generation, despite tougher market backdrop

** JP Morgan (“overweight”; PT 5,950p): JPM says Q4 U.S. organic growth likely to show some signs of improvement vs. Q3

** JPM says cost base and M&A contribution phasing implies stronger y/y profit growth in Q4 than Q3

** Peel Hunt (“add”; PT 5,430p): PH says company was “on track” even as U.S. new housing data slipped back slightly and commercials markets only grew modestly (Reporting by Yadarisa Shabong and Justin George Varghese in Bengaluru)

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