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ULS: Expanded Testing Capabilities And Equity Raise Will Support Long Term Upside

ULS: Declining Revenue Forecasts Will Offset Improvements In Profit Margins

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ULS
AnalystConsensusTarget
Not Invested
Published 20 Apr 2025

Update shared on 10 Dec 2025

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Analysts have slightly raised their price target on UL Solutions to 91.71 dollars, citing marginal improvements in discount rate assumptions, long term revenue growth forecasts, and projected profitability that support a steady valuation multiple.

What's in the News

  • Completed a $975 million follow on equity offering of 12,500,000 Class A common shares priced at $78 per share, with a $2.145 discount per security (Key Developments)
  • UBS Securities LLC added as co lead underwriter for the $975 million follow on equity offering, strengthening the syndicate supporting the capital raise (Key Developments)
  • Announced major expansion of its electromagnetic and wireless testing capabilities with a new green lab in Neu Isenburg, Germany, designed for large high power industrial, medical, consumer and automotive products and expected to be operational by mid 2027 (Key Developments)
  • Opened its first Japan based motor energy efficiency laboratory at the Ise campus to provide local performance testing for electric motors and help domestic manufacturers meet global efficiency standards while cutting overseas shipping costs (Key Developments)
  • Launched new AI safety certification services guided by UL 3115 to assess robustness, transparency, security and bias in AI powered products and enable compliant offerings to carry the UL Mark (Key Developments)

Valuation Changes

  • Fair Value: Unchanged at 91.71 dollars per share, indicating a stable central valuation outlook.
  • Discount Rate: Fallen slightly from 7.23 percent to approximately 7.23 percent, reflecting a marginally lower perceived risk profile.
  • Revenue Growth: Effectively unchanged at about 5.76 percent, suggesting steady long term top line expectations.
  • Net Profit Margin: Essentially stable at roughly 15.34 percent, indicating no material shift in projected profitability.
  • Future P/E: Edged down slightly from about 42.13 times to roughly 42.13 times, implying a marginally lower forward valuation multiple on earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.