William Blair Starts QXO Inc (QXO) at Outperform

William Blair analyst Ryan Merkel initiates coverage on QXO Inc (NASDAQ: QXO) with a Outperform rating.

The analyst comments "We believe QXO will become one of the largest players in the $800 billion building products distribution industry. QXO is a new roll-up backed by serial entrepreneur Brad Jacobs, who has a stellar record in similar fragmented industries. In our view, building products distribution is the “perfect industry” for Jacobs, who has a repeatable playbook for customer-centric cultures, accretive M&A, and operational excellence. The first acquisition in the $50 billion revenue journey in the next decade is Beacon Building Products, a $10 billion distributor of roofing, waterproofing, and exterior building products. We expect QXO will buy another large distributor soon as the strategy is “big-game hunting” then optimizing with technology. Using our DCF analysis, which anticipates midsingle-digit organic growth, sizable M&A, and 16% EBITDA margins by 2035, we see the stock doubling to $40."

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

Shares of QXO Inc closed at $13.71 yesterday.

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