Should UL Solutions’ (ULS) Move Into Industrial Metaverse Software Verification Prompt Investor Attention?

• Earlier this week, Siemens announced that its industrial manufacturing software offerings were the first to receive UL Verified Marks from UL Solutions, as the testing and certification provider expanded into the industrial software and metaverse sector.
• This move sees UL Solutions adapting its verification and smart systems programs to complex software-driven technologies, providing independent third-party evaluation in the rapidly evolving industrial metaverse landscape.
• We’ll examine how UL Solutions’ entry into software verification and the industrial metaverse could shape its longer-term investment narrative.

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UL Solutions Investment Narrative Recap

To be optimistic about UL Solutions, I think you need to believe in the long-term demand for independent verification in new technology spaces, particularly as industrial automation and digital infrastructure become central to manufacturing worldwide. The recent Siemens announcement expands UL Solutions’ reach into the industrial metaverse and software sectors, but on its own, this news likely isn’t a material near-term catalyst or risk. The biggest short-term driver remains operational earnings quality and consistent revenue growth, while macroeconomic slowdowns or shifts in technology adoption rates still represent the largest risks.

Of UL Solutions’ recent news, the partnership with Siemens is especially relevant, as it illustrates the company’s push into software verification and smart systems, a sector shift that could unlock new recurring revenue streams. Evaluation and verification programs in emerging sectors such as the industrial metaverse may reinforce the company’s competitive positioning, but will take time to prove their impact alongside existing catalysts like new facility investments in HVAC and robotics testing.

By contrast, investors should be aware that the company’s effective tax rate is expected to increase due to new global tax rules, which could…

Read the full narrative on UL Solutions (it’s free!)

UL Solutions’ narrative projects $3.5 billion revenue and $477.8 million earnings by 2028. This requires 6.1% yearly revenue growth and a $150.8 million earnings increase from $327.0 million today.

Uncover how UL Solutions’ forecasts yield a $71.27 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for UL Solutions range from US$67.78 to US$71.27, based on two separate analyses. As plans for expansion into industrial software drive attention to new growth areas, you may want to consider how consensus around performance can shift in response to major announcements.

Explore 2 other fair value estimates on UL Solutions – why the stock might be worth just $67.78!

Build Your Own UL Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your UL Solutions research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free UL Solutions research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate UL Solutions’ overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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