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Investing.com - Truist Securities has lowered its price target on Core & Main Inc. (NYSE:CNM) to $50.00 from $56.00 while maintaining a Hold rating on the stock.
The price target adjustment follows Core & Main’s second-quarter results, which fell below Street expectations, prompting a modest cut to the company’s fiscal year 2025 guidance.
Core & Main shares fell 25% on Thursday while the S&P remained flat, as investors reacted to slower residential business performance and notably higher selling, general and administrative expenses that drove the earnings miss.
Truist Securities noted that management’s reduced outlook for residential products aligns with current market conditions and "does not constitute some information of a new leg down" in the sector.
The firm’s new $50 price target represents 13 times the company’s estimated fiscal year 2026 EBITDA, with Truist maintaining that shares appear fairly valued at current levels.
In other recent news, Core & Main Inc. reported its Q2 2025 earnings, which fell short of forecasts. The company posted an earnings per share (EPS) of $0.70, missing the expected $0.79, and generated $2.09 billion in revenue, below the $2.12 billion forecast. These results have prompted several financial firms to adjust their outlooks on the company. Wells Fargo lowered its price target for Core & Main to $58, citing a narrowed revenue projection for fiscal year 2025 and a reduced EBITDA target. Wolfe Research also reduced its price target to $67, highlighting concerns over Core & Main’s revised guidance. Similarly, RBC Capital decreased its price target to $62, noting residential market weakness and increased SG&A expenses. Despite these adjustments, both Wolfe Research and RBC Capital maintained an Outperform rating on the stock. These developments reflect Core & Main’s ongoing challenges in meeting financial expectations.
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