GMS' Wallboard Price Trends Surpass Expectations, Analyst Discusses Potential Limitations
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst Keith Hughes has reiterated a Hold rating on GMS Inc. (NYSE:GMS) and raised the price target to $72 from $60. GMS reported Q4 FY23 sales growth of 1.2% Y/Y to $1.304 billion, surpassing the consensus of $1.27 billion. The analyst increased the FY 2024 EBITDA estimate to $596 million from $507 million. However, Hughes believes that the housing outlook and potential pressure on wallboard pricing will limit multiple expansions.
June 27, 2023 | 7:02 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
GMS Inc. has received a Hold rating from Truist Securities analyst Keith Hughes, with a raised price target of $72. The company's Q4 FY23 sales growth surpassed expectations, leading to an increased FY 2024 EBITDA estimate. However, potential pressure on wallboard pricing may limit multiple expansions.
The Hold rating and raised price target indicate a positive outlook for GMS Inc. The company's better-than-expected Q4 FY23 sales growth and increased FY 2024 EBITDA estimate also suggest strong performance. However, potential pressure on wallboard pricing could limit further growth, which may impact the stock's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100