Core & Main price target raised to $34 from $33 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Core & Main to $34 from $33 and keeps a Neutral rating on the shares. The company’s Q2 EBITDA exceeded consensus estimates but the stock fell 6.6% yesterday, the analyst tells investors in a research note. While some investors may have had concerns about the sustainability of pricing and a volume guide down that add a new leg to the bear thesis, the firm believes that these concerns are overdone. For FY24 and FY25, any lingering inventory pressure is expected to be offset by SG&A leverage given that a large part of Core & Main’s SG&A is variable, Goldman Sachs added.