RBC Capital analysts raised their price target on Core & Main, Inc. (NYSE:CNM) to $26 from $24 while reiterating their Outperform rating.

The analysts raised their 2023 adjusted EBITDA estimate to $810 million from $779 million, in line with the new $785-$865 million guide, while their 2024 EBITDA estimate rises more meaningfully to $750 million from $621 million. These increases were driven by less severe price decline assumptions as pricing remains sticky at elevated levels for most products even as volume has softened.

According to the analysts, the company continues to retain strong pricing and margin as carryover tailwinds flow through H1/23, with gross margin still expected to normalize as 2023 progresses.