GMS Inc. price target raised to $92.20 from $65 at RBC Capital

RBC Capital analyst Mike Dahl raised the firm’s price target on GMS Inc. (GMS) to $92.20 from $65 and keeps a Sector Perform rating on the shares. QXO (QXO) has offered to acquire GMS for $95.20 per share in cash, representing an 18% premium over Wednesday’s $81.01 closing price, the analyst tells investors in a research note. The firm says this represents a “healthy multiple” of 10.2-times the current Street 2025 EBITDA estimate. RBC, before the Wall Street Journal’s report of a competing Home Depot (HD) bid, said it sees a “somewhat low probability” of a competing bid emerging. RBC’s initial view is the highest probability is a deal transacting close to the initial offer.