Core & Main (CNM) has received a new Buy rating, initiated by UBS analyst, .
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
UBS has given its Buy rating due to a combination of factors that highlight Core & Main’s potential for growth and profitability. The firm anticipates an acceleration in organic growth, supported by improving trends in both residential and non-residential markets. Despite recent stock pullbacks, UBS sees this as an attractive entry point, with a projected price target of $65, indicating a significant upside potential of approximately 27%.
UBS also expects Core & Main to achieve an annual sales growth rate of around 8% through FY27, driven by volume and pricing increases. The company’s expansion plans, including a 2.5% annual growth in branch count, particularly in under-penetrated areas, further bolster its growth outlook. Additionally, the valuation appears favorable compared to peers, with the current market conditions offering a promising risk-reward ratio of approximately 2.0 to 1.
In another report released on September 22, Wells Fargo also maintained a Buy rating on the stock with a $58.00 price target.
Based on the recent corporate insider activity of 80 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.