UBS started covering Core & Main Inc with a Buy rating and a price target of $65. The brokerage says the recent drop in the stock makes it a good time to invest. They expect the company’s sales to grow about 8 percent per year through 2027, faster than the market’s expected 4 percent.
UBS believes concerns about rising operating costs are exaggerated. They expect Core & Main to increase its profit margins by more than half a percent each year for the next two years. They forecast adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, of $1.19 billion in 2027, beating expectations.
The bank highlighted signs of stronger demand in the U.S. housing market. They also expect non-residential construction to bounce back in 2026 and 2027, helped by government stimulus and tax incentives.
UBS values the stock at 12 times its 2027 EBITDA, which matches its historical average, and sees about 27 percent potential upside from today’s price. Analysts say early signs of improving housing and construction activity, along with better pricing, make Core & Main an attractive investment heading into 2026.
