Core & Main price target raised to $42 from $40 at Deutsche Bank

Deutsche Bank analyst Joe Ahlersmeyer raised the firm’s price target on Core & Main to $42 from $40 and keeps a Buy rating on the shares. Core & Main’s Q4 adjusted EBITDA of $164M fell short of the firm’s $169M estimate primarily due to lower sales growth than the firm had modeled, the analyst tells investors in a research note. Deutsche Bank still views it as highly encouraging that the company expects to bottom out in the 25.5%-26% range for gross margins, representing several hundred basis points of improvement vs. pre-pandemic levels.