UL Solutions initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of UL Solutions with an Overweight rating and $39 price target. UL is a long-established global testing, inspection, and certification provider that focuses on the outsourced product portion of the market, which was sized at $38B in 2022 and is projected to grow at a 5%-6% annually through 2026, the analyst tells investors in a research note. The firm says UL should trade at a premium to the peer group, given its higher margin profile.