Loop Capital sees residential bidding in pipe market improving

Loop Capital keeps a Buy rating for Advanced Drainage (WMS) and Core & Main (CNM) as part of a broader research note on Pipe market names, also maintaining their respective price targets of $180 and $52, citing the firm’s recent discussion with the Director of Business Development at Fortiline Waterworks – a top three distributor of underground water, sewer and storm utility products. The discussion indicated that while demand is still soft in the near term, residential bidding has improved recently, and while pricing – especially PVC – is likely to moderate, a return to pre-COVID levels is unlikely, the analyst tells investors in a research note.