Core & Main initiated with an Overweight at Wells Fargo

Wells Fargo analyst Sam Reid initiated coverage of Core & Main with an Overweight rating and $52 price target. The analyst sees an opportunity post the pullback in the shares. Sales expectations have “justifiably” come down due to deflation and delays, but the shares more than embed the risk and overshadow a “still high quality” business, the analyst tells investors in a research note. The firm says Core & Main’s risk/reward “seems favorable enough” to call a long-term entry point as near-term estimates embed deflationary pressure and don’t contemplate a sales recovery in fiscal 2025.