Wells Fargo analyst Sam Reid has maintained their bullish stance on CNM stock, giving a Buy rating yesterday.
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Sam Reid has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Core & Main. Despite the company missing expectations across its profit and loss statement, particularly in selling, general, and administrative expenses, Reid views this as a controllable issue with potential for cost reductions in the near future. The current weakness in the stock is seen as an opportunity, as the market reaction appears overly harsh given the circumstances.
Reid notes that while the residential outlook has deteriorated and price inflation benefits are neutral in the short term, there are transitory issues in SG&A that are expected to improve. Additionally, Core & Main’s revenue growth, though slightly below expectations, still shows resilience with organic growth. The company’s exposure to new residential lots and ongoing efforts to reduce SG&A expenses are seen as positive factors that could enhance future performance, justifying the Buy rating despite recent setbacks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CNM in relation to earlier this year.