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Investing.com - Wolfe Research has reduced its price target on Core & Main Inc. (NYSE:CNM) to $67.00 from $75.00 while maintaining an Outperform rating on the stock.
The price target adjustment comes as Wolfe Research analyst Nigel Coe expressed greater comfort with the lower end of Core & Main’s revised guidance, citing unproven second-half 2025 general and administrative efficiency.
Despite the reduced price target, Wolfe Research noted that Core & Main stock currently trades at 12.8 times its 2025 EBITDA and 17 times Cash EPS, representing significant discounts compared to its closest competitor FERG and other distribution and water peers.
The research firm’s year-end 2026 target price was revised downward from $75 to $67 based on lower estimates for the company.
Wolfe Research still sees an attractive 35% base case upside potential for Core & Main relative to its coverage universe, despite the price target reduction.
In other recent news, Core & Main Inc. reported its Q2 2025 earnings, which did not meet analysts’ expectations. The company posted an earnings per share (EPS) of $0.70, falling short of the projected $0.79. Additionally, Core & Main generated $2.09 billion in revenue, missing the forecasted $2.12 billion. In response to these results, RBC Capital adjusted its price target for Core & Main to $62, down from $67, while maintaining an Outperform rating. The firm cited residential market weaknesses and increased selling, general, and administrative expenses as reasons for lowering its fiscal year 2025 and 2026 EBITDA estimates by 6% and 9%, respectively. These developments highlight ongoing challenges for Core & Main in maintaining its financial targets amidst market pressures.
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