Core & Main ticks higher after CD&R stake slash, Citigroup upgrade

Core & Main

08/01/2024 15:28

** Shares of water pipe distributor Core & Main  CNM.N  up
0.4% at $39.57 after private equity firm Clayton, Dubilier &
Rice (CD&R) reduces stake, and Citigroup raises rating to "buy"
from "neutral"
    ** Core & Main early Mon announces secondary offering of 15
mln shares and repurchase of 5 mln shares from CD&R (See SEC
prospectus filing)
    ** JP Morgan and Citigroup acting as jt bookrunners for
offering, which priced at $38.45, per market sources
    ** CD&R a month ago offloaded 20 mln shares, including 5 mln
shares repurchased by CNM, in secondary offering that priced at
$35.80
    ** Co will have ~206.2 mln shares outstanding after latest
offering
    ** Also on Mon, Citigroup research analysts raised their PT
on CNM by $10 to $48
    ** Avg rating among 12 analysts covering CNM is "buy";
median PT of $42 unchanged from Jan 8 but up from $38 on Nov 8 -
LSEG data
    ** CNM shares, which surged ~109% in 2023, hit record high
of $40.69 on Dec 28

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))