Arthur Truslove, an analyst from Citi, has initiated a new Buy rating on UL Solutions Inc. Class A (ULS).
Arthur Truslove has given his Buy rating due to a combination of factors that indicate an optimistic future for UL Solutions Inc. Class A. He highlights the company’s potential to achieve accelerated growth within its Industrial division, which accounts for a significant portion of the company’s adjusted EBITDA. Truslove also points out the possibility of a margin rebound in the Consumer division, which has been underperforming cyclically but is poised for improvement as market conditions normalize. This division’s recovery is expected to contribute to overall margin expansion, and when combined with the steady growth in the Industrial sector, presents a compelling case for an upward trajectory in the company’s financials.
Truslove further supports his recommendation with an analysis of the Testing and Inspection (TIC) industry’s typically attractive growth, margins, and cash flow conversion. He notes that UL Solutions is well-positioned to maintain elevated organic growth rates, especially driven by the energy transition and construction sectors. The valuation of UL Solutions is grounded in a PE multiple that aligns with industry benchmarks, providing a target price that suggests a favorable return on investment. The expected increase in organic revenue and adjusted EPS, along with the potential for margin expansion in the Consumer division, underpin Truslove’s positive outlook on UL Solutions’ stock, meriting a Buy rating.
According to TipRanks, Truslove is ranked #4137 out of 8771 analysts.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on ULS:
