10:19 AM EDT, 06/20/2025 (MT Newswires) -- GMS' (GMS) acquisition proposal from QXO (QXO) has the "highest probability" of resulting in a deal close to the initial offer, RBC Capital Markets said in a Thursday note.

GMS received an unsolicited proposal from QXO to acquire the company for $95.20 per share in cash. QXO noted that the offer price is at the high end of its valuation range, and RBC analysts said that they see a "somewhat low probability" of a competing bid emerging.

QXO could view GMS as an "initial 1-2 punch" on a blended exteriors/interiors strategy after its earlier acquisition of Beacon Roofing Supply (BECN), the analysts said, adding that they believe there is no antitrust risk as there is no business overlap.

The analysts' baseline expectation is for GMS to combine with QXO, but they said ABC Supply and Foundation Building Materials could emerge as potential alternative bidders.

Given QXO's offer price, RBC raised GMS' stock price target to $95.20 from $65 and maintained the rating at sector perform.

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