CNM Stock Forecast & Price Target

Core & Main demonstrated a positive financial trajectory, with gross margin increasing by 40 basis points to 26.8%, reflecting ongoing modest gains. The company reported a 6.6% year-over-year growth in net sales, driven by a volume increase of 5% alongside contributions from acquisitions. Furthermore, management anticipates that selling, general, and administrative (SG&A) expenses have peaked in the second quarter, suggesting improved efficiency and reduced SG&A as a percentage of revenues in the upcoming quarters.

Core & Main's stock outlook is negatively impacted by a revised 2025 adjusted EBITDA guidance, now projected between $920 million and $940 million, falling short of the street's expectation of $980 million. The company's management attributes this downward adjustment to declining residential demand and increased operating expenses, reflecting broader industry trends. Additionally, the weak residential volumes reported in August further corroborate the challenges faced within the market, aligning Core & Main with peers that have also downgraded their forecasts.