Ferguson Price Target Raised as Stock Surges on Strong Q3 and Dividend News

Ferguson Enterprises Inc. (NYSE: FERG) is currently riding a wave of positive momentum, with its stock price surging to $211.36, for a dramatic 17.23% increase in the past 24 hours. Sentiment had been boosted by a confluence of factors including strong earnings, a generous dividend announcement, and now this morning, favorable analyst upgrades.

BofA raised the firm's price target on Ferguson to $225 from $198 whilst maintaining a Buy rating on the shares following a beat and raise Q3 report. Ferguson has clearly been gaining share in the quarter, but without diluting its margin this time, which the firm thinks is “very encouraging,” the analyst tells investors.

The firm's valuation method is unchanged and its raised target accounts for the upward revision in earnings estimates and currency effects, the analyst noted.

This impressive turnaround is rooted in the company's recently released Q3 results (June 3, 2025), which evidently exceeded expectations. Adding to the positive news, Ferguson announced a dividend of $0.83 per share, with an ex-dividend date of June 20, 2025; with both clearly resonating with markets.

However, some caution is warranted. The 14-Day Relative Strength Index (RSI) currently stands at 67.91, suggesting that the stock is approaching overbought territory. This means that the recent rapid price appreciation may not be sustainable in the short term, and a correction could be on the horizon. Investors should closely monitor the RSI and other technical indicators for signs of a potential pullback.

From a technical analysis perspective, the stock is trading significantly above its 50-day and 200-day simple moving averages (SMAs), which are currently at $169.04 and $185.60, respectively. This further confirms the strong upward trend but also highlights the potential for a reversion to the mean. The gap between the current price and these moving averages could represent a potential entry point for short positions or a signal to take profits for those who have already benefited from the recent rally.

The company is currently experiencing a period of strong performance, with recent developments boosting sentiment, but caution should not be dismissed. Whilst BofA's price target raise can be seen as a further boost, between the $210-$215 level has previously found some resistance, and the average price target of $211 is on par with current price action. Recent news could put that battle to bed, but eyes on volume for any sign of a slowing move.