Industrials

Report by Northcoast Research

Northcoast raises their TP for the stock to $250 (24x 2026 earnings estimate of $10.58), citing strong execution and share gains in HVAC, helped by FERG's focus on dual/multi-trade contractors and leverage to Daikin brands amid R-454B shortages. Management lifted guidance, with gross margins now seen above 30% and higher operating margin expectations, reflecting strong pricing and easing commodity deflation. Despite weak residential markets, FERG’s diverse end-market model is proving advantageous. With private label potential, sales leverage and underappreciated non-residential exposure, Northcoast sees the stock as undervalued and well-positioned to benefit from shifting industry dynamics and eventual recovery in residential demand.

Industrials

Report by Asymmetric Advisors

Contrarian Buy opportunity - currently has ZERO analyst BUYs. This air conditioner company will benefit from the recent drop in copper (its most important input cost) which hammered earnings last year. While Fujitsu General and the popular Daikin will both benefit from rising global temperatures, an extremely hot Japanese summer benefits Fujitsu General to a greater extent given its higher domestic exposure. It is also likely to see a surge in heat pump sales in Europe ahead of winter given fears for Russia gas supply. Lastly, 42% holder Fujitsu will sell its stake, potentially sparking a bidding war.