CNM Stock Forecast & Price Target

Core & Main has demonstrated a strong financial performance with gross margins reaching 26.8%, reflecting a 40 basis point improvement from the previous year, indicative of effective cost management. The company achieved a year-over-year net sales growth of 6.6%, supported by a volume increase of 5% alongside contributions from acquisitions, showcasing its expanding market presence. Furthermore, management anticipates an improvement in SG&A expenses as a percentage of revenues in the second half of the fiscal year, signaling efficiency gains that could enhance profitability.

Core & Main's stock outlook is negatively impacted by a downward revision of 2025 adjusted EBITDA guidance to a range of $920 million to $940 million, which falls short of market expectations of $980 million. This revision is attributed to weaker residential volumes observed in August and increased operating expenses, indicating potential sustaining challenges in revenue generation. Additionally, the company's revised expectations align with those of its peers, which further underscores a sector-wide softness in demand.