Core & Main margin concerns ‘overblown,’ says RBC Capital

RBC Capital analyst Mike Dahl views the magnitude of the selloff in Core & Main following earnings as “unwarranted” and “reflecting skittishness” around management comments on “competitive pressures,” despite an effective raise to the company’s fiscal year gross margin percentage guidance. The firm, which calls the margin concerns “overblown” and the core “intact,” maintains an Outperform rating $60 price target on Core & Main, adding that it would use weakness as a buying opportunity.