Core & Main’s even partial progress toward targets is ‘compelling’, says RBC

RBC Capital keeps Outperform rating and $34 price target on Core & Main after the company rolled out its inaugural long-term targets, articulating a strong growth, margin, and capital deployment roadmap through FY28 in its Investor Day presentation. The margin targets are “more aspirational than growth”, but even partial progress towards the growth/margin targets presents a compelling value creation opportunity, the analyst tells investors in a research note. The firm adds it is positive on Core & Main’s balanced/resilient business, water investment tailwinds, and strong consolidation.