Analysts Cut GMS Price Target Post Q4 Results

Raymond James analyst Sam J. Darkatsh lowered the price target for GMS Inc GMS to $70 (61% upside) from $72 while maintaining the Outperform rating on the shares.
The analyst mentions that GMS trades at a double-digit FCF yield; has seen recent insider buying with expanded repo authority; has a "drama-free" balance sheet, and has an extensive runway of demand buoying volumes near term.
Darkatsh adds that a lack of upcoming catalysts tempers the bullish stance to flip increasingly negative sentiment.
The analyst notes that the Q4 beat was across-the-board, with gross margin aided by better-than-feared steel-related pricing. Fundamentally, not much has changed in the business sequentially from Q3. Demand remains firm, and pricing remains sticky, he added.
Truist analyst Keith Hughes lowered GMS price target to $50 (15% upside) from $65 while maintaining the Buy rating on the shares post Q4 results.
The analyst notes that the company saw double-digit organic increases in each major product category. Hughes states that GMS' end markets remain supportive.
Price Action: GMS shares are trading higher by 6.17% at $43.53 on the last check Friday.

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