Sep. 29 at 7:21 PM
UBS Initiates Coverage of Core & Main with Buy Rating
UBS started coverage of Core & Main Inc, assigning a buy rating and a
$65 price target, citing a recent share price decline as an attractive entry point while growth accelerates toward 2026. The broker expects sales to grow roughly 8% annually through FY2027, driven by stronger residential and non-residential construction activity and firmer pricing trends, versus consensus expectations of around 4% growth.
Short-term concerns about operating cost inflation are seen as “overblown,” with EBITDA margins projected to expand over 50 basis points annually. Adjusted EBITDA is forecasted at
$1.19 billion for FY2027, above market and consensus estimates. UBS values the stock at 12x FY2027 EBITDA, in line with historical averages, implying roughly 27% upside from current levels.
$CNM