GMS Inc. price target lowered to $85 from $100 at Loop Capital

Loop Capital lowered the firm’s price target on GMS Inc. to $85 from $100 and keeps a Hold rating on the shares. The company’s Q4 earnings miss was due to gross margin headwinds from more significant steel framing price deflation and wallboard margin pressure, the analyst tells investors in a research note. The firm’s recent wallboard survey indicated that distributors such as GMS were facing wallboard margin pressure from challenges passing along March manufacturer price increases, and the company confirmed this by noting that a subset of distributors initially did not expect increases to gain traction while reflecting on a “mixed demand environment”, Loop added.