Street Calls of the Week
Investing.com - KeyBanc initiated coverage on QXO Inc (NASDAQ:QXO) with an Overweight rating and a price target of $28.00 on Tuesday. The target represents significant upside potential from the current trading price of $19.06, with analyst targets ranging from $27 to $50. According to InvestingPro data, the stock has already gained over 38% in the past six months.
The investment firm cited QXO’s "compelling long-term story" supported by leading growth and margin expansion potential under what it described as a proven management team.
KeyBanc highlighted QXO’s disciplined capital allocation, synergy capture capabilities, and advantageous position within a fragmented industry structure as key factors in its positive outlook.
The firm noted that within the more than $800 billion building products distribution space, QXO’s consolidation strategy has "ample runway to unlock value" as the company works toward its $50 billion vision.
KeyBanc also pointed to non-discretionary demand in core roofing markets, secular tailwinds in housing, and management’s track record of acquiring and improving businesses as providing "a solid foundation for above-market growth and long-term shareholder value creation."
In other recent news, QXO Inc. reported impressive second-quarter results, with adjusted earnings per share reaching $0.11, significantly exceeding analyst expectations of $0.04. The company’s revenue also surpassed projections, coming in at $1.91 billion compared to the consensus estimate of $1.88 billion. These results highlight QXO’s strong performance and growth trajectory. Additionally, Raymond James initiated coverage on QXO with an Outperform rating, noting the company’s ambitious growth strategy following its acquisition of Beacon Roofing Supply. The firm sees potential in QXO’s platform within building products distribution, supporting its long-term revenue goals. Morgan Stanley also initiated coverage with an Overweight rating, setting a price target of $35.00. The bank views QXO as a key player in the fragmented U.S. industrial distribution sector, with plans to significantly increase its revenue through strategic consolidation. These recent developments underscore the growing investor interest in QXO’s future prospects.
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