CNM Stock Forecast & Price Target

Core & Main reported a gross margin of 26.8%, reflecting a 40 basis point improvement over the previous year, indicative of the company's ongoing efforts to enhance profitability. The company achieved a net sales increase of 6.6% year-over-year, driven by a 5% volume gain while maintaining stable pricing and benefiting from acquisitions. Additionally, management anticipates a reduction in selling, general, and administrative (SG&A) expenses as a percentage of revenues in the latter half of the fiscal year, which could further enhance overall financial performance.

Core & Main's stock outlook has been negatively impacted by a downward revision of its 2025 adjusted EBITDA guidance range to $920 million-$940 million, significantly lower than the market expectation of $980 million. This adjustment reflects a decline in residential demand, as evidenced by the weak volumes reported in August, which align with broader trends observed across its peer companies. Additionally, the company is facing higher operating expenses, further compounding concerns regarding its financial performance and future growth prospects.