- Credit Suisse analyst Jamie Cook raised Core & Main Inc (NYSE:CNM) price target to $40 (an upside of 42%) from $33 and maintained an Outperform rating on the shares.
- Cook notes that Core & Main was up after beating consensus revenue, EBITDA, and margin estimates, while raising full-year 2021 guidance despite most industrial companies challenged with supply chain and price cost.
- Baird analyst David Manthey raised the price target to $33 from $32 and maintained an Outperform rating on the shares.
- Manthey sees a favorable near-term demand/pricing backdrop, with implied guidance well above his prior estimate, while medium/long-term fundamental drivers are positive.
- Deutsche Bank analyst Rohit Seth raised the price target to $37 (an upside of 31%) from $33 and maintained a Buy rating on the shares.
- Seth tells investors in a research note that the company “reported another impressive quarterly result.”
- Seth says Core & Main is “clearly managing the external environment well with supply-demand imbalances and all.”
- Citi analyst Anthony Pettinari downgraded Core & Main to Neutral from Buy with an unchanged price target of $32 (an upside of 13.6%).
- Pettinari cites valuation for the downgrade following the period of recent share outperformance. The analyst now sees Core & Main’s risk/reward as “roughly balanced” with fundamentals better reflected in its valuation.
- Recently, Core & Main reported a Q3 net sales increase of 38.7% year-over-year to $1.4 billion, beating the consensus of $1.29 billion and EPS of $0.39, beating the estimate of $0.30.
- Gross profit increased by 51.6% Y/Y to $370.6 million, and margin expanded by 230 bps to 26.4%.
- Adjusted EBITDA increased 83.4% Y/Y to $189.1 million and margin increased 330 basis points to 13.5%.
- Based on current visibility, the backlog of existing orders, and business trends, the company expects FY21 Adjusted EBITDA of $560 million – $580 million, a year-over-year growth of 64% to 70% (compared to the prior expectation of $470 million – $510 million).
- Price Action: CNM shares are trading lower by 2.19% at $27.90 on the last check Wednesday.
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