GMS Inc. downgraded to Neutral from Outperform at Baird

Baird downgraded GMS Inc. (GMS) to Neutral from Outperform with a price target of $95, up from $93. The shares traded sharply higher in response to QXO‘s (QXO) bid, as well as reporting of a rumored Home Depot (HD) offer, the analyst tells investors in a research note. Baird considers it unlikely that a competing Home Depot bid would be materially above GMS’s current share price. In addition, QXO and other strategic and financial players are unlikely to enter a bidding war, contends Baird. Thus, the firm believes the stock’s risk/reward skews negatively at current levels.