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Investing.com - Truist Securities raised its price target on GMS Inc . (NYSE:GMS) to $105.00 from $80.00 on Friday, while maintaining a Hold rating on the building products distributor. The company, currently valued at nearly $4 billion with annual revenues exceeding $5.5 billion, has shown strong financial health according to InvestingPro analysis.
The price target increase follows QXO’s public all-cash offer of $95.20 per share for GMS on Wednesday, representing an all-time high valuation for the company. The Wall Street Journal reported late Thursday that Home Depot (NYSE:HD) has also submitted an offer, though specific details were not disclosed. InvestingPro data shows GMS currently trades above its Fair Value, suggesting the market anticipates a competitive bidding process.
Truist’s new target exceeds QXO’s offer price, as the firm believes GMS "will be taken out by someone at higher levels." The analyst noted that QXO has a history of "one and done" offers, while Home Depot may be willing to pay a higher multiple.
GMS shares reached near all-time high prices following the acquisition news. The company specializes in distributing wallboard, ceilings, steel framing and complementary construction products.
Truist suggested these offers "most likely will mark the end of GMS as a publicly traded company," indicating the firm expects a successful acquisition to conclude.
In other recent news, GMS Inc. reported its fourth-quarter fiscal year 2025 results, which included a notable earnings per share (EPS) beat but a revenue miss. The company posted an EPS of $1.29, surpassing the forecasted $1.11, marking a 16.22% surprise. However, revenue came in at $1.33 billion, falling short of the anticipated $1.43 billion. In the wake of these results, several analyst firms have adjusted their price targets for GMS. Loop Capital raised its price target to $95.00, citing multiple takeover offers from QXO and Home Depot. Meanwhile, DA Davidson increased its target to $83.00, noting GMS’s progress on cost-reduction initiatives. Raymond (NSE:RYMD) James also raised its price target to $90.00, maintaining an Outperform rating due to GMS’s strong industry position. Stephens followed suit, increasing its price target to $95.00, highlighting the company’s better-than-expected quarterly performance despite a challenging macro environment. These developments reflect a mix of optimism and caution among analysts regarding GMS’s future performance.
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