Core & Main sees multi-year demand tailwinds from IIJA, says Loop Capital

Loop Capital analyst Jeffrey Stevenson keeps a Buy rating and $38 price target on Core & Main after the company’s inaugural Investor Day presentation that forecast 9% CAGR with contributions from annualized market growth of 2%-4%, organic above market growth of 2%-4% and M&A of 2%-4%. The analyst also notes the management highlighting multi-year demand tailwinds from the Infrastructure Investment and Jobs Act, or IIJA, along with population growth and an undersupply of houses in residential. The stock has been under pressure recently given concerns of a slowing residential environment, but investors responded favorably to Core & Main’s long-term growth and margin expansion strategy, the firm added.