In a report released today, David Manthey from Robert W. Baird downgraded GMS (GMS – Research Report) to a Hold, with a price target of $95.00.
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David Manthey has given his Hold rating due to a combination of factors surrounding the current market dynamics and acquisition rumors involving GMS. The stock has seen a significant increase in value following a bid from QXO and speculative reports of an offer from HD. However, Manthey believes that the likelihood of a higher competing bid is low, given QXO’s reputation for making firm offers and the lack of confirmation or details regarding HD’s rumored interest.
Manthey’s $95 price target reflects the formal offer from QXO, which is at the upper limit of their valuation range. The market’s current pricing appears to anticipate a potential bid from HD in the range of $100-105, which would be a significant premium. However, if HD’s bid does not materialize, the stock could revert to QXO’s offer price, suggesting limited upside potential. Consequently, the risk/reward profile at the current share price level is not favorable, prompting a Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is neutral on the stock.