Core Insights - GMS Inc. reported better-than-expected fourth-quarter fiscal 2025 results, with net sales of $1.33 billion, surpassing analyst estimates of $1.30 billion, despite a 5.6% decrease from the previous year [1] - The adjusted EPS of $1.29 exceeded the consensus estimate of $1.11, indicating strong performance amid challenging market conditions [1][2] - GMS received an unsolicited buyout proposal of $95.20 per share from QXO, leading to a 28.3% increase in GMS shares, which traded at $103.92 [2] Analyst Ratings and Price Targets - Stephens & Co. analyst Trey Grooms maintained an Overweight rating and raised the price target from $90 to $95 [4] - RBC Capital analyst Mike Dahl maintained a Sector Perform rating and increased the price target from $65 to $95.2 [4] - Barclays analyst Matthew Bouley kept an Equal-Weight rating and raised the price target from $71 to $95 [4] - Raymond James analyst Sam Darkatsh maintained an Outperform rating and increased the price target from $80 to $90 [4]

Group 1 - QXO has proposed to acquire GMS for approximately $5 billion, offering $95.20 per share, which is a 27% premium over GMS's 60-day volume-weighted average price of $74.82 [1] - GMS's stock rose nearly 11% to $81.01 following the announcement, with after-hours trading pushing it up an additional 17.27% to around $95 [1] - QXO's CFO emphasized the straightforward nature of the offer, stating it is at the upper end of their valuation range [1] Group 2 - Following the acquisition of Beacon Roofing Supply, QXO has become the largest publicly traded building products distributor in the U.S., with a market capitalization nearing $13 billion after a 42% increase in stock price this year [2] - QXO is willing to sign a confidentiality agreement with GMS, provided it does not include clauses that would hinder direct communication with GMS shareholders [2] - QXO has engaged Goldman Sachs and Morgan Stanley as financial advisors and Wharton & Garrison as legal counsel for the acquisition proposal [2]