Gold prices tick higher on fresh US tariff threats, Fed rate cut hopes
Investing.com - Wells Fargo (NYSE:WFC) initiated coverage on QXO Inc (NASDAQ:QXO) with an Overweight rating and a $30.00 price target on Tuesday. The stock, currently trading at $19.62, has shown remarkable momentum with a 71.35% return over the past year. According to InvestingPro data, analyst price targets range from $27 to $44, suggesting significant upside potential.
The investment bank views QXO as a long-term growth story with potential to reach approximately $50 billion in revenue by 2035, representing a nearly five-fold increase from current levels. This ambitious target appears supported by analysts’ expectations, with revenue forecast to grow by 124.86% in the current fiscal year.
Wells Fargo’s analysis suggests QXO has a viable growth strategy combining mergers and acquisitions with technology and asset optimization in the building products distribution sector.
The firm notes that while QXO is a new entity, its management team has experience with successful industrial roll-ups in fragmented categories, including transport/logistics company XPO and its GXO/RXO spinoffs, as well as URI, described as the world’s largest equipment rental company.
QXO aims to capture more than 5 share points in what Wells Fargo identifies as an $800 billion total addressable market in building products distribution, a goal the bank considers "ambitious, but not unreasonable."
In other recent news, QXO, Inc. has made significant leadership changes by appointing Michael DeWitt as the chief procurement officer and Eric Nelson as the chief information officer. DeWitt, who brings nearly three decades of procurement experience, previously managed international spend at Walmart (NYSE:WMT) International. Nelson, coming from The Kraft Heinz (NASDAQ:KHC) Company, will take charge of QXO’s IT strategy. In terms of analyst coverage, RBC Capital initiated an Outperform rating on QXO, emphasizing its potential for mergers and acquisitions within the building products distribution sector. Similarly, Citi gave a Buy rating, highlighting the company’s opportunity to consolidate the fragmented market. Truist Securities also issued a Buy rating, noting QXO’s consolidation strategy as a positive factor. These developments indicate a focus on strategic growth and leadership enhancement for QXO.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.