BofA downgrades Cadre to Neutral, says premium valuation ‘no longer supported’

BofA analyst Ronald Epstein downgraded Cadre (CDRE) to Neutral from Buy with a price target of $38, down from $45. Inorganic growth is a major part of the story and valuation, says the analyst, who expects deals will likely be delayed, slowed, and the cost of borrowing to increase in the current environment. The firm lowered its EPS estimates for 2025, 2026 and 2027, adding that given it anticipates a slowdown in both inorganic growth and total company sales, a premium valuation is “no longer supported.”