Morgan Stanley Starts GMR Solutions Inc (GMRS) at Equalweight

Morgan Stanley analyst Craig Hettenbach initiates coverage on GMR Solutions Inc (NYSE: GMRS) with a Equalweight rating and a price target of $14.00.

The analyst comments: “Global Medical Response Solutions is the largest provider of emergency medical services (EMS) in the US spanning ground and air operations. The company’s business is diverse by customer base (largest operation is 2% of revenue and no commercial payor represents more than 5% of revenue) and mix (63% Commercial, 26% Medicare, 9% Medicaid). GMRS provides services to 1,400 counties and reaches 200mn Americans (~60% of the population) and the company responded to 46mn emergencies in 2025. GMRS has ~50 communication centers, 24 dispatch centers and handles 35mn radio transmissions annually. The company employs 22K clinicians (EMT/paramedics), nearly 2k nurses and 1.7k pilots. We estimate revenue of $6.002bn/$6.302bn and adjusted EBITDA of $1.149bn/$1.241bn in 2026/27 . Longer term, management is targeting MSD+ revenue growth and HSD EBITDA growth on an organic basis and 20%+ EBITDA margin.

Our Equal-weight on GMRS is in the context of remaining very selective in the group. Our only Overweight is THC which has demonstrated strong execution in transforming its business, is benefitting from a leadership position in ASCs where there are tailwinds driven by a shift in care settings, has stronger FCF/stock buyback optionality and trades at a similar multiple to GMRS. For a newly public company and considering the fluid operating backdrop for providers, we highlight a wide range of outcomes and similar skew between our Bull Case ($20) and Bear Case ($3) in GMRS. The stock appears oversold and an EV/EBITDA multiple of 5.8X on 2026E is not reflecting its market leadership and improved portfolio in EMS. That said, in quick fashion it has become a “show me” story that likely needs several quarters to deliver on results and change the narrative. Furthermore, hospital stocks are down 20%-35% YTD (vs. the broader healthcare sector down 2% and the S&P 500 up 10%) and our discussions with investors reveal limited appetite to add exposure to the group.”

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

Shares of GMR Solutions Inc closed at $10.90 yesterday.

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