Loop Capital Reiterates Hold Rating on GMS Inc. (GMS)

Loop Capital analyst Jeffrey Stevenson reiterated a Hold rating and $85.00 price target on GMS Inc. (NYSE: GMS).

The analyst commented: "We are maintaining our Hold rating and $85 PT after GMS reported a 1Q25 miss and a reduced outlook on continued margin headwinds. We correctly anticipated that FY25 consensus expectations were too high in our recent wallboard survey since the company expected to return to normalized 32% gross margin in 2Q25 due to 1) July steel framing price increases stabilizing segment pricing and 2) being able to fully offset wallboard price increases from earlier this year. Unfortunately this did not occur since steel framing price increases failed to gain traction and wallboard distribution only obtained modest incremental price realization with select residential customers during the quarter. The company now expects 2Q25 gross margin to be 31.6% to 31.8% and that it will take another two quarters to return to price/cost parity in its wallboard segment. GMS also began to see commercial and multi-family end-market demand slow in July and declines are expected to accelerate moving forward due to large project delays and multi-family backlogs being largely worked off, respectively."

For an analyst ratings summary and ratings history on GMS Inc. click here. For more ratings news on GMS Inc. click here.

Shares of GMS Inc. closed at $85.00 yesterday.

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