GMS Inc. (GMS) PT Lowered to $71 at Barclays

Barclays analyst Matthew Bouley lowered the price target on GMS Inc. (NYSE: GMS) to $71.00 (from $80.00) while maintaining a Equalweight rating.

The analyst comments "Maintain EW: We think the rapidly deteriorating demand outlook leaves GMS in a challenged position near term, especially if wallboard price were to show signs of cracking, which at least has not yet happened. Steel inflation could become a tailwind following now several quarters of deflationary pressure, although one must assume there could be volume elasticity as an offset. For now, a surprisingly weak volume outlook for the next quarter (wallboard: single-family volumes remarkably down HSD, MF down -35%, and commercial softening to -20%) with consequent gross margin pressure partially offset by incremental SG&A reductions leaves us reducing estimates further."

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