Raymond James Starts QXO Inc (QXO) at Outperform, PT $28

Raymond James analyst Sam Darkatsh initiates coverage on QXO Inc (NASDAQ: QXO) with a Outperform rating and a price target of $28.00.

The analyst comments "We initiate coverage of QXO (i.e., re-initiate coverage of former BECN) with an Outperform rating and a $28 price target. With the acquisition of Beacon Roofing Supply, QXO now has a platform within building products distribution to support its long-term goal of becoming a $50B revenue company. QXO has established lofty targets both for organic growth (aiming to double Beacon’s EBITDA over the next five years) and M&A (Beacon was the first of likely several acquisitions of scale), underpinned by founder/CEO Brad Jacobs’ extensive history in successfully consolidating large, fragmented industries and creating significant shareholder value. While we are impressed by Jacobs’ track record/ambition and view QXO shares as an asymmetrically favorable setup, our enthusiasm is partially tempered by potential execution risk that could challenge/interrupt its “proof of concept” (creating high variance), especially in a business historically marked as price-taker/commoditized/cyclical combined with a valuation that suggests to us the market already assumes delivery of Beacon-related financial goals."

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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