Stephens analyst Trey Grooms downgraded the rating on GMS (GMS – Research Report) to a Hold today, setting a price target of $95.00.
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Trey Grooms has given his Hold rating due to a combination of factors surrounding GMS’s current market situation. The stock is trading above QXO’s offer price of $95.20, which represents a valuation of 10 times GMS’s estimated EBITDA for the calendar year 2025. This suggests that the market may have already priced in the potential benefits of the offer.
Additionally, there is uncertainty regarding HD’s competing offer, as no specific details have been disclosed. Grooms notes that QXO has a disciplined approach to mergers and acquisitions, implying that any potential offer from HD might not significantly exceed the current trading price. Given these considerations, Grooms views the risk-reward profile as more balanced, prompting a Hold rating as he opts to take a more cautious stance on GMS at this time.
In another report released on June 25, Raymond James also downgraded the stock to a Hold with a $90.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is neutral on the stock.