Home Depot to acquire GMS stock for $110 per share; Truist raises price target

Investing.com - Truist Securities has raised its price target on GMS Inc . (NYSE:GMS) to $110.00 from $105.00 while maintaining a Hold rating on the stock. The company, currently valued at $4.16 billion, has shown remarkable momentum with a 28% gain over the past six months, though InvestingPro data indicates the stock is in overbought territory.

Home Depot (NYSE:HD) announced Tuesday it has reached an agreement to acquire GMS for $110 per share in an all-cash transaction.

The new price target from Truist Securities reflects the offer price from Home Depot, according to the research firm.

Truist Securities noted that other potential bidders have likely withdrawn from the acquisition process, including QXO, which had previously made a lower offer of $95.20 per share a few weeks ago.

The research firm has maintained its Hold rating on GMS stock following the acquisition announcement.

In other recent news, The Home Depot, Inc. has announced a definitive agreement to acquire GMS, Inc. for $110 per share through its subsidiary, SRS. This acquisition offer represents a 16% premium over a previous bid by Quikrete Holdings (QXO). Fitch Ratings has affirmed Home Depot’s Long-Term Issuer Default Rating at ’A’ following this proposed $5.5 billion acquisition, citing the company’s strong fiscal 2024 revenue of approximately $160 billion. The acquisition aligns with Home Depot’s strategy to expand its offerings to complex professionals and is expected to modestly delay the company’s deleveraging trajectory. TD Cowen has maintained a Buy rating on Home Depot, noting the acquisition’s potential to enhance the company’s Pro ecosystem and allow for share repurchases by fiscal year 2026. Meanwhile, Baird has downgraded GMS stock from outperform to neutral, citing the acquisition dynamics and a negative risk/reward scenario at current trading levels. RBC Capital has raised its price target for GMS to $95.20, reflecting QXO’s cash offer valuation, and considers a competing bid unlikely. These developments highlight Home Depot’s ongoing efforts to grow market share and strengthen its position in the construction materials industry.

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