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Investing.com - RBC Capital has lowered its price target on Core & Main Inc. (NYSE:CNM) to $62.00 from $67.00 while maintaining an Outperform rating on the stock.
The firm reduced its fiscal year 2025 and 2026 EBITDA estimates by 6% and 9% respectively, citing residential market weakness and higher SG&A expenses that offset ongoing stability in pricing and gross margins.
RBC Capital noted that the SG&A miss and continuing residential headwinds will likely create a near-term overhang on the stock as management works through cost-reduction actions.
Despite these challenges, the firm stated that Wednesday’s sell-off meaningfully reprices the risk and the now lower earnings outlook, supporting their continued Outperform rating on Core & Main.
RBC Capital also suggested that the current situation could potentially create an opening for Core & Main as a takeover candidate, specifically mentioning that a company like QXO might express interest.
In other recent news, Core & Main Inc. reported its Q2 2025 earnings, which did not meet analysts’ expectations. The company announced an earnings per share (EPS) of $0.70, falling short of the anticipated $0.79. Additionally, Core & Main generated $2.09 billion in revenue, which was below the forecasted $2.12 billion. These results are part of recent developments concerning the company. Despite the earnings miss, there have been no reports of any analyst upgrades or downgrades following the announcement. The company’s performance in this quarter has attracted attention due to the gap between actual and expected financial results. Investors are closely monitoring these outcomes as they consider their positions. The company has yet to announce any mergers or acquisitions in the recent period.
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